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Akanksha Power and Infrastructure IPO:
In preparation for its debut into the public market, Akanksha Power & Infrastructure Limited (APIL) is getting ready for its initial public offering (IPO) on the NSE Emerge platform.
This article examines the company’s business prospects, goes into detail about the IPO, and clarifies any possible risks or advantages for investors.
About the IPO:
- Opening date: December 27, 2023
- Closing date: December 29, 2023
- Issue size: Rs. 27.49 Crores
- Price band: Rs. 52 – Rs. 55 per share
- Lot size: 2000 shares
- Bookrunner: Narnolia Financial Services Ltd
- Registrar: Link Intime India Private Ltd
Business Profile:
APIL is a manufacturer of electrical equipment, with a focus on vacuum contactors, instrument transformers, electrical panels and low-voltage switchgear.
Institutions, businesses, and utilities engaged in the distribution and transmission of electricity are among their clientele.
With a manufacturing plant in Haridwar, Uttarakhand, and a network of strategically placed sales and service outlets, the company has a strong national footprint.
Growth Potential:
- Positive industry tailwinds: Increasing electrification rates, the integration of renewable energy sources, and the expansion of infrastructure are driving a dramatic transformation of India’s power sector. This offers APIL’s products a sizable, addressable market.
- Emphasis on niche markets: Within the switchgear industry, APIL serves niche markets like the expanding need for small, energy-efficient devices. They might have an advantage over bigger players because of this emphasis.
- Skilled management group: The business is run by a group that has a track record of success in the electrical equipment sector, which may assist them take advantage of possibilities and overcome obstacles.
Investment Risks:
- Competition: Both long-standing companies and recent arrivals are fighting for market share in the fiercely competitive electrical equipment sector. The somewhat smaller size and narrower range of products offered by APIL may present difficulties.
- Profitability issues: Despite recent revenue increase for the organisation, profitability is still a worry. Investors must to examine the financial accounts and forecasts with great care.
- Market volatility: Given that APIL is a SME IPO, its shares are probably going to be more erratic than those of bigger businesses. A long investing horizon and a high risk tolerance are requirements for investors.
Allotment and Listing:
The share allotment will be completed on January 1, 2024, with the shares likely to list on the NSE Emerge platform on January 3, 2024. Investors should pay particular attention to these dates and monitor their accounts for allotment information.
Conclusion:
The Akanksha Power & Infrastructure IPO provides investors with the opportunity to engage in a booming sector with potential for future growth. However, the company’s smaller size, concerns about profitability, and market competitiveness pose substantial challenges.
Before making any investment decisions, investors should carefully analyse their risk tolerance, undertake extensive research, and speak with financial professionals.