Rulka Electricals Limited IPO: Price, Lot Size, Strengths and Risks

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Rulka Electricals Limited has announced the launch of its Initial Public Offering (IPO), comprising a fresh issue and an offer for the sale of shares, starting from May 16, 2024. The subscription period will remain open until May 21, 2024. The company specialises in electrical and firefighting solutions, serving a diverse range of sectors, including industrial, commercial, retail and theatre.

Its IPO is scheduled to be listed on NSE Emerge, with a tentative listing date set for May 24, 2024. The minimum lot size for one application is 600 shares, while the price band is fixed at Rs. 223 to Rs. 235 per share.

To get a comprehensive insight into the crucial details of Rulka Electricals Limited IPO prior to investing, keep reading this blog. 

Additional Read: Rulka Electricals Ltd IPO

IPO Details

Go through the table below for a brief overview of the upcoming IPO to be launched by Rulka Electricals Limited. 

IPO Launch Date

May 16, 2024 to May 21, 2024

Issue Type

Book Built IPO

Listed at

NSE Emerge

Price Band 

Rs. 223 to Rs. 235 per share

Face value 

Rs. 10 per share

Minimum Lot Size

600 shares (retail investors) 

Fresh Issue Size

8,42,400 shares

OFS Size

2,80,800 shares

Total Issue Size 

11,23,200 shares (Rs. 26.40 crore)

Shareholding Pre-Issue

34,16,000

Shareholding Post-Issue

42,58,400

Additional Read: How to Invest in an IPO Online

About the Company

Established on May 30, 2013, under the name Rulka Electricals Private Limited, the company operates as a turnkey projects contractor, providing solutions for all types of electrical and firefighting projects. It is a key provider of electrical and firefighting solutions. 

Rulka Electricals Limited provides a diverse range of services, including electrical solutions, electrical panels, solar EPC contracts and turnkey electrical warehousing projects. It also provides commercial and industrial electric services, maintenance services, electrical contracting and data and voice cabling installations.

The company's registered office is situated in Maharashtra and is staffed by a team of skilled personnel, including technicians, engineers and quality controllers. Its team diligently ensures the successful completion of projects, meets client demands and plays a significant role in the company's overall growth and success, evident from the total income.

For the fiscal year ending on February 29, 2024,  Rulka Electricals Limited reported a total income of Rs. 6,527.77 lakh and a restated profit after tax of Rs. 565.77 lakh.

Additional Read: Difference Between NFO and IPO

IPO Timeline 

Here is the tentative schedule and launch timeline of the Rulka Electricals Limited IPO as announced. 

Open Date 

Thursday, May 16, 2024

Close Date 

Tuesday, May 21, 2024

Cut-off Time for UPI Mandate Confirmation

5 PM on May 21, 2024 

Basis of Allotment Date 

Wednesday, May 22, 2024

Initiation of Refunds Date 

Thursday, May 23, 2024

Credit of Shares to Accounts 

Thursday, May 23, 2024

Listing Date 

Friday, May 24, 2024

IPO Lot Sizes

Investors interested in the Rulka Electricals Limited IPO have the option to bid for a minimum of 600 shares and in multiples thereof. 

For detailed information regarding the minimum and maximum investment amounts for retail investors and HNIs, check the following table outlining the lot sizes:

Application

Lots

Shares

Amount

Retail (Min)

1

600

₹141,000

Retail (Max)

1

600

₹141,000

HNI (Min)

2

1,200

₹282,000

Company Financials 

Here is a summary table of the financial statements of Rulka Electricals Limited for the past three years. This table will help you make informed decisions about whether to participate in its IPO based on the company's financial health. 

Particulars

For the Financial Year Ending (Rs. In Lakhs)

 

March 31, 2023

March 31, 2022

March 31, 2021

Total Assets

2,826.95

1,919.04

982.41

Total Liabilities

2,269.62

1,642.22

817.67

Total Expenses

4,327.89

3,436.96 

1,887.29

Total Revenue

4,689.78

3,627.41

1,960.11

Profit/Loss After Tax

280.52

112.08

53.72

EBITDA

401.07

220.07

105.03

Strengths of the Company

Here are some noteworthy strengths of Rulka Electricals Limited that make its IPO worth investing in. Take a look. 

  • Rulka Electricals Limited holds ISO certification (ISO 9001:2015) and is dedicated to providing its customers with the highest quality services. This commitment to quality in services, processes and inputs has given the company a competitive edge over others.
  • The company has earned a strong reputation in the industry, which has enabled it to successfully retain its esteemed clients.
  • It serves a diverse range of end markets across various industry sectors, including warehouse, retail, industrial and hotel/hospital clients.
  • Its business model focuses on the optimal use of existing resources, leveraging the expertise of its development team and achieving high levels of client satisfaction.
  • The promoters and directors of this company have over a decade of experience in the power sector, possessing in-depth knowledge of the services and industry in which it operates.

Risks Involved 

Along with the above strengths, you must also consider the risks involved with the business of Rulka Electricals Limited before investing in its IPO. Here are some of the risk factors that might slow down the company's growth:

  • The company relies heavily on a small number of customers. Losing these clients or the limited contracts that they send could hurt the overall business. 
  • Any delays or unexpected increases in costs during the completion of the company's upcoming projects could harm its ability to make profits from selling these projects.
  • For the ordinary course of its business, the company needs various approvals and licences. If it fails to obtain or renew these registrations successfully, it could negatively impact its operations and financial condition. 

Summing Up 

As a retail investor interested in the Rulka Electricals Limited IPO, you must go through the  RHP (Red Herring Prospectus) document for a comprehensive idea before investing. Doing so will help you determine whether the company's business model and prospects align with your investment plans. In addition, stay tuned to our website for more updates on upcoming IPOs.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

Source: Tata Consumer Products Press Release on BSE

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Frequently Asked Questions

Who is the registrar of Rulka Electricals Limited IPO?

Answer Field

Bigshare Services Private Limited serves as the registrar of Rulka Electricals Limited IPO.

What is the purpose of the Rulka Electricals Limited IPO?

Answer Field

Rulka Electricals Limited plans to use the proceeds from its fresh issue to meet working capital requirements, cover offering expenses and for general corporate purposes. The funds from the Offer for Sale will go to the selling shareholder, not to the company.

Who is the selling shareholder of Rulka Electricals Limited IPO?

Answer Field

The selling shareholder of Rulka Electricals Limited IPO is Abhay Kantilal Shah HUF, offering to sell up to 2.8 lakh equity shares with a face value of Rs. 10 each.

Who is the book-running lead manager of the IPO launched by Rulka Electricals Limited?

Answer Field

Beeline Capital Advisors Private Limited is the book-running lead manager of the IPO launched by Rulka Electricals Limited.

What is the launch date of the Rulka Electricals Limited IPO?

Answer Field

Rulka Electricals Limited IPO will be open for subscription from May 16, 2024, till May 21, 2024.

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