About the Company:
Dinesh Engineers Ltd is a passive communication infrastructure provider Company in India, focused on providing passive communication infrastructure services mainly to the Telecom operators and internet service providers (“ISPs”).
Company was incorporated in 2006, and over the years Company was working towards executing the fiber laying work for many Telecom Operators.
Company’s key expertise lies in the field of providing support services to telecom vendors which inter alia includes project management for laying of the duct and optic fibre cables, dark fiber leasing, optical fiber network construction, maintenance of duct and optic fibre and optical fibre project turnkey services to various Telecom network operators & broad band Service operators across the states of India.
Company has been licensed by Department of Telecommunications (DoT) with the Infrastructure Provider (IP)-I License, under which they can establish and maintain wired networks, Duct space for the purpose to grant on lease or sale on IRU basis to the licensees of Telecom operators, ISPs etc.
Since the receipt of the IP-I license, Company has created their own optic fibre network of around 6000 kms which runs across the state of Maharashtra, Goa, Telangana, Rajasthan and Karnataka.
Company’s wired network infrastructure solutions are used by many Telecom Companies such as Airtel, BSNL, Reliance Jio, Vodafone, Idea, Tata Communication etc.
As of February 28, 2018, Company has laid fiber of around 13000 Kms for various telecom vendors which includes fibre laid under Vendor Projects and own network running across 10 states in India. Company’s total Order Book was Rs.143.5 crores.
Company’s Background:
Since the year 2011, Company has laid fibre network of around 7500 Kms for the telecom operators under the Vendor projects which run across the states of Maharashtra, Gujarat, Uttar Pradesh, Bihar, Karnataka, Andhra Pradesh, Chhattisgarh, Goa and Rajasthan and are currently being used by companies like BSNL, Airtel, Vodafone, IdeaCellular, Reliance Jio, TTML, BSNL, Reliance Corporate IT Park and TCIL.
Apart from laying the network under the Vendor project or own network, they are also engaged in the operations & maintenance activity of the fibre network and preventing the underground optic fiber therein from getting cut due to activities like road repairs, digging and expansion works by various authorities.
Gas Pipeline Laying Business:
Based on the past records and experience in the field of lying the fibre for the Telecom operators, Mahanagar Gas Limited has entrusted the Company with the laying of its gas pipelines under the city of Mumbai.
The gas pipeline laying work will help them to diversify in the field of oil and gas sector and will also open new business avenues. The work of lying the gas pipeline have been undertaken through outsourcing the same to the sub-contractors.
Company’s Business Verticals:
Prominent Clients of the Company:
- Bharti Airtel Ltd
- Idea Cellular Ltd
- Vodafone,
- Tata Communications Ltd.
- Intech ltd
- D-vois SSV Ltd
- Atria Ltd
- Power Grid Ltd
- Hathway Ltd
- Mahanagar Gas Ltd (for gas pipeline work)
Company’s Business Model:
Company’s core business of leasing the fibre and duct on IRU basis to telecom operators is a unique business model which forms a major portion of their revenue.
Further the business of leasing the fibre and duct on IRU basis has emerged beneficial for the Telecom operators as there are increasing difficulties and the increasing price of ROW faced by the Telecom operators..
Management Team:
- Mrs. Shashikala Dinesh Kargal (Designation: Whole Time Director)
- Mr. Dinesh Kollaiah Kargal (Designation: Chairman and Managing Director)
- Mr. Darshankumar Dinesh Kargal (Designation: Non Executive Director)
Positives For the Company:
Established Optic fiber network in India.
Over the past years Company has created their own fibre optic network of around 6000 Kms which run across Maharashtra, Goa, Telangana, Rajasthan and Karnataka. Apart from the own network and have also undertaken Vendor Projects and developed a Network of around 7500 Kms for their customers.
This fibre network is currently being used by various companies such as companies like telecom operators, cable TV companies, MSOs, ISPs etc.
Long standing Customer Relationships with Strong Repeat Business.
Company is providing services to the leading telecommunications company which includes PSUs Companies as well. Company has a history of high client retention and derive a significant proportion of their revenues from repeat business.
Expansion into other business areas (Gas Pipeline Laying)
Company has also diversified in executing lying of Gas pipeline projects and is currently undertaking lying of gas pipeline project in the state of Maharashtra.
Objectives of the Issue:
- Expansion of business by setting up of further OFC Network under IP-1 License.
- To fund expenditures towards general corporate purposes.
- To meet public issue expenses.
Peer Group Comparison:
We believe that none of the listed companies in India are engaged in a portfolio of business similar to Dinesh Engineers Ltd. Hence we cannot make any Comparison.
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | FY 18 |
|---|---|---|---|---|---|---|
| Revenue | 25.33 | 23.95 | 51.15 | 119.3 | 168.4 | 302.77 |
| Net Profit | 2.6 | 3.0 | 6.9 | 12.63 | 21.93 | 61.83 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 28th September 2018 |
| Issue Closes on:. | 3rd October 2018 |
| Issue Price | Rs.183 -185 |
| Face Value | Rs.10 |
| Minimum Lot | 80 Shares |
| Minimum Investment | Rs.14,800 |
| Issue Constitutes | 25.31% |
| Issue Size | Rs.185 cr |
| Market Cap | Rs.730.75 cr |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 1,00,00,000 |
| Equity Shares Prior to the Issue | 2,95,00,000 |
| Equity Shares after the Issue | 3,95,00,000 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 9th October 2018 |
| Initiation of Refunds | on or Before 10th October 2018 |
| Credit of Equity Shares: | on or Before 10th October 2018 |
| Listing Date: | on or Before 11th October 2018 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 50,00,000 | 0.00 | 0.00 | 0.00 |
| NII | 15,00,000 | 0.21 | 0.30 | 0.43 |
| Retail | 35,00,000 | 0.06 | 0.10 | 0.29 |
| Employee | ———— | —– | —– | —- |
| TOTAL | 1,00,00,000 | 0.05 | 0.08 | 0.17 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 20.95 | 8.83 | 57.23% | 36.60 |
| Check IPO Allotment Status: |
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Link InTime Website (Click on the below Link)https://linkintime.co.in/PublicIssue/ |
Reviews of Current & Upcoming IPOs:
| Company Contact Info: |
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| Dinesh Engineers Limited DEPL House Neighbourhood Shopping Complex, Sector 4, Nerul, Navi Mumbai Maharashtra – 400706 India. Tel. No. 022-27704600/4700 E-mail: admn@depl.co.in Website: www.depl.co.in |
| IPO Registrar Info: |
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| LINK INTIME INDIA PVT LIMITED C-101, 1st Floor, 247 Park, LBS Marg, Vikhroli (West), Mumbai-400083, Maharashtra, India Tel No.:+91-22-49186200; Fax No.:+91-22-49186195 Email: dineshengineers.ipo@linkintime.co.in Investor E-mail: dineshengineers.ipo@linkintime.co.in Website: www.linkintime.co.in |
| Lead Manager to the Issue: |
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| HEM SECURITIES LIMITED 203, Jaipur Tower, M.I. Road, Jaipur-302001 Tel. No.: +91- 0141-40510000 Email: ib@hemsecurities.com Website: www.hemsecurities.com |
