About the Company:
John Energy is one of India’s leading private onshore Oil & Gas service providers catering to upstream and midstream players in India and overseas.
They provide diversified service offerings spanning drilling, workover and gas compression services to the companies engaged in the onshore exploration, development and production of Oil & Gas.
Company owns a fleet of 34 rigs comprising of 19 Drilling Rigs and 15 Workover Rigs.They currently own 7 rigs with capacities above 1,000 HP which are capable of drilling depths 5,000 meters and beyond.
Over the years they have enhanced their capabilities with addition of advanced onshore drilling rigs of higher power, configuration and real-time data monitoring capabilities.
Company’s Rigs have high mobility and are equipped with advanced components such as top drives enable them to execute high skills drilling including pad drilling, deviation wells and horizontal drilling.
They offer integrated contract services to upstream players. They also offer midstream services i.e. natural gas compression services and natural gas dehydration services to players, engaged in the production and transportation of natural gas in India.
Company has more than two decades of experience in providing onshore Oil & Gas contract services across various geographies in India, including Gujarat and Rajasthan , Himalayan mountain range, Madhya Pradesh, Tamil Nadu and Andhra Pradesh, and Assam, Arunachal Pradesh, Tripura and West Bengal.
They own a central warehousing facility which includes rig maintenance facilities and a multi-functional workshop, located at Jagudan, Ahmedabad-Mehsana Highway, Gujarat.
Rigs Owned by the Company:
Gas Dehydration Business:
Recently Company has forayed into the gas dehydration business.This is a relatively new business segment in India, primarily triggered due to the gas leakage incident that occurred in GAIL’s KG Basin pipeline in the East Godavari district of Andhra Pradesh on June 27, 2014.
As a consequence of this incident, PNGRB has made it mandatory to dehydrate natural gas before mounting it in the pipelines.
Company currently owns one gas dehydration package and have been awarded a gas dehydration contract at Odalaveru Onshore Terminal in Andhra Pradesh.
Competition in the Gas Dehydration Business:
The gas compression and gas dehydration services industry is characterized with limited players including players like John Energy Ltd , Deep Industries Limited, HAL Offshore. (This business is dominated by very few companies )
This has been primarily due to the high asset and technology intensive industry resulting to advantage to existing players.
The capital intensity nature of the industry coupled with the relevant technical expertise act as entry barrier for new entrants.
Management Team:
- Mr. Maheshkumar N. Vyas (Designation: Chairman and Managing Director)
- Mr. Dilipkumar N. Vyas (Designation: Whole time Director)
- Mr. Chiragkumar M. Vyas (Designation: Whole-time Director)
TOP 5 Shareholders:
| Sr.No. | Shareholder Name | Number of Equity Shares held | Percentage of Equity Share Capital % |
|---|---|---|---|
| 1. | Maheshkumar N. Vyas | 3,848,485 | 20.95 |
| 2. | Rakesh Radheshyam Jhunjhunwala | 3,345,169 | 18.21 |
| 3. | India Rig Company | 2,859,867 | 15.57 |
| 4. | John Oil and Gas Limited | 2,283,940 | 12.43 |
| 5. | Dilipkumar N. Vyas | 1,180,355 | 6.43 |
| Total | 1,35,17,816 | 73.59% |
Peer Group Comparison:
There are no listed entities similar to John Energy Ltd line of business and comparable to our scale of operations.Hence we cannot make any Comparison.
Positives for the Company:
One of the Leading Oil & Gas service providers with focus on upstream services.
John Energy Ltd is one of India’s leading private onshore Oil & Gas service providers catering to upstream and midstream players in India and overseas.
To meet India’s burgeoning domestic energy demand and reduce import dependency, significant level of exploration, development and production activities are expected to be undertaken in India.
During past few years, E&P activities have gained momentum with upstream companies incurring more capex. The rise in production of Oil & Gas, would be supported with heavy investments in the exploration and production segment.
As per the Ministry of Petroleum and Natural Gas, in the next 10 years there will be a scope for $300 billion worth of hydrocarbons projects in India. We believe that John Energy is well positioned to benefit from the Indian onshore E&P potential.
Strong Project Execution capabilities and Significant Equipment Base.
John Energy has one of the largest rig fleet in private sector in India for onshore drilling / workover activities.Out of 34 Rigs that they own, 19 are Drilling Rigs and 15 are Workover Rigs.
Company has drilling Rigs with capacities ranging from 750 HP to 2000 HP, are capable of drilling depths from about 2,000 meters to 6,000 meters. Over the years they have enhanced their drilling capabilities with addition of advanced onshore drilling rigs, which can be deployed at relatively higher day rates.
Company currently owns 7 rigs with capacities above 1,000 HP which are ideal for deeper prospect well drilling and drilling in conditions of higher pressure and higher temperature conditions.
Successful (Past) Track Record.
Company has demonstrated a successful track record which includes more than 1,000 days of operation of a rig with zero LTI (Lost Time Incident) for 1,096 days in Fiscals 2009 to 2012.
They have a track record of executing projects overseas and have completed projects in Kazakhstan, Uganda and Algeria.
They have successfully demonstrated their capability to execute contracts overseas are prequalified to undertake projects in various countries including being on the “Approved Vendor List” for Kuwait Oil Company Limited.
Company is also a registered member of the International Association of Drilling Contractors (“IADC”), which represents the worldwide Oil & Gas drilling industry.
Strong Order Book.
Company’s Order Book as of January 15, 2018 was Rs.780.8 crores (including contract value on hand, and LOA (Letter of Award)), comprising Order Book in the work-over and drilling rigs services, integrated contracted services, air and gas compression services and gas dehydration services.
Strong Portfolio of Rigs.
Over the years Company has transformed their rig fleet to include higher power and technically advanced rigs. This is in pursuit to cater the needs of E&P players.
They have more than doubled their rig fleet since 2005. Company has focused on acquisition of modern medium and deeper prospect well drilling and deep workover Rigs in the last five years.
Financials of the Company: (Consolidated)
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 30th Sept 17 |
|---|---|---|---|---|---|---|
| Revenue | 441.3 | 521.86 | 514.8 | 565.1 | 581.72 | 231.19 |
| Net Profit | 42.7 | 56.28 | 33.6 | 29.0 | 71.35 | 16.33 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | Will be Updated |
| Issue Closes on:. | Will be Updated |
| Issue Price | Will be Updated |
| Retail Portion | Will be Updated |
| Face Value | Rs.10 |
| Minimum Lot | Will be Updated |
| Minimum Investment | Will be Updated |
| Issue Constitutes | Will be Updated |
| Issue Size | Will be Updated |
| Market Cap | Will be Updated |
| Listing at | BSE & NSE |
| Equity Shares Offered | Will be Updated |
| Equity Shares Prior | 1,83,67,454 |
| Equity Shares after the issue | Will be Updated |
Also Read: Important Tips For Investing in an IPO.
Important Dates:
| Finalization of Basis of Allotment | Will be Updated |
| Initiation of Refunds | Will be Updated |
| Credit of Equity Shares: | Will be Updated |
| Listing Date: | Will be Updated |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 00:00) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | ||||
| NII | ||||
| Retail | ||||
| Employee | ||||
| TOTAL |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) | Debt/Equity Ratio |
|---|---|---|---|---|
| 39.46 | Will be Updated | 12.04% | 322.58 | 0.88 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Will be Updated | Will be Updated | Will be Updated |
Grey Market Premium :
| Date | IPO | Price Band | Grey Market premium | Kostak Rates |
|---|---|---|---|---|
| 00/10/18 | John Energy Ltd | Will be Updated | Will be Updated | Will be Updated |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/PublicIssue/ |
Also Read: Important Ratios you Should Know.
| Find the List of Upcoming IPOs in 2019: |
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Upcoming IPOs in 2019 (Click on the below Link)www.UpcomingIPOs-in-India-2019 |
| Company Contact Info: |
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| John Energy Ltd Plot No. 220, GIDC Estate Mehsana – 384 002 Gujarat, India Tel: +91 2762 251 830 Fax: +91 2762 254 822 Website: www.johnenergy.com |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C-101, 247 Park, L B S Marg Vikhroli West, Mumbai 400 083 Tel: +91 22 4918 6200; Fax: +91 22 4918 6195 Email: johnenergy.ipo@linkintime.co.in Investor email: johnenergy.ipo@linkintime.co.in Website: www.linkintime.co.in |
