About the Company:
Kapston Facilities Management Limited (KFML), was incorporated in the year 2009 and is a provider of private security and facility management services in India.
Company is headquarters in Hyderabad (2 offices- Registered office and Corporate office), Kapston boasts of a widespread branch network consisting of 4 additional branch offices and 8 training centres across 10 cities in 8 states.
Company is an ISO 9001 & OHSAS 18001 certified company for providing Integrated Facility Management Services for Security, House Keeping, M&E (Electro Mechanical) and Landscaping (Horticulture) and allied services.
Company has grown considerably over such a short span and is one of the leading service providers of Security Services in Telangana & Andhra Pradesh.
Presently they have around 6394 employees, including a team of competent & qualified professionals & esteemed clients spread across different locations.
They serve prominent names of various segments including IT & ITES, Multinational Corporations (MNCs), Corporates, Industries, Banks, Hotels, Hospitals, Malls & Retail, Infrastructure, Construction projects and Residential Sites, etc.
Kapston plans to be a market leader in the security and facilities management industry with expansion plans in South India.
State wise Distribution of Revenues:
Company’s Employee Strength:
Services Provided by the Company:
Security Services:
- Manned Guarding
- Escort Guarding
- Event management.
Facility Management:
- House Keeping
- Office Support & Staffing (Business Support Services)
- Engineering & Maintenance (Electro, Mechanical & Technical Services)
- Landscaping & Garden Maintenance.
- Pantry Management Services.
- Façade Cleaning Services.
- Pest Control Services.
Infrastructure Facilities of the Company (For Training):
Company’s Academy is situated across a two-and-a-half-acre campus at Kompally, Hyderabad with a capacity of training 4000 students annually. Company is honored to be a part of ‘Rajiv Yuva Kiranalu’ a prestigious program under the Government of Andhra Pradesh.
Management Team:
- Mr. Srikanth Kodali (Designation: Managing Director)
- Mrs. Kanti Kiran Doddapaneni (Designation: Whole Time Director)
- Mr. Radha Krishna Pinnamaneni (Designation: Non-Executive Director)
Objectives of the Issue:
Offer for Sale (OFS): (Around Rs.10.59 cr)
- Company will not receive any proceeds from the Offer for Sale by the Selling Shareholders.
Fresh Issue: (Around Rs.10.59 cr)
- Part finance working capital requirements of the Company.
- Part repayment of Unsecured Loans.
- Meet General Corporate Purposes.
- Meet Offer Expenses.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Part Finance Working Capital Requirements | 6.60 |
| Part repayment of Unsecured Loans | 2.0 |
| Meet General Corporate Purposes | 0.99 |
| Issue Expenses | 1.00 |
| Net Proceeds | 10.59 crores |
Positives for the Company:
Integrated services provider in diversified business segments, industries and geographies.
Kapston Facilities Management is one of the leading provider of Security Services in Telangana and Andhra Pradesh.
They provide security and integrated facility management services to a various customer segments including IT & ITES, Multinational Corporations (MNCs), Corporates, Industries, Banks, Hotels, Hospitals, Malls & Retail, Infrastructure, Construction projects and Residential Sites.
Company’s operations are spread across 8 Indian states with 1 Registered office, 1 Corporate office and 6 branch offices across 10 cities in India, giving them a nation-wide presence and reducing their dependence on any one particular region.
Partnership with National Skill Development Corporation (NSDC):
Company has entered into an agreement with the National Skill Development Corporation India (“NSDC”).
NSDC is a one of its kind, Public Private Partnership (“PPP”) set-up by Ministry of Finance working under the supervision and control of Ministry of Skill Development and Entrepreneurship.
NSDC is a unique model, by which funds are provided to entities at a concessional interest rate of 6% p.a. and other terms of repayment. Such funds are required to be used by such company for investment towards Training Infrastructure and Working Capital requirements.
Kapston has already availed a loan of Rs. 4.34 crores through this model and is successfully in process of complying with the terms of the Training Commitment, so much so that, it has already begun the process of applying to the NSDC for a further loan upto Rs. 20 crores to invest in its future financial requirements for training manpower/ facilities.
This continued public private partnership shall enable the Company to continue to reap the benefits of low interest costs and considerably lenient terms which in turn shall help in efficient Working Capital Management of the Company.
Financials of the Company:
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | 31st Dec 17 |
|---|---|---|---|---|---|---|
| Revenue | 28.00 | 41.52 | 58.91 | 74.99 | 93.87 | 84.87 |
| Net Profit | 1.15 | 1.45 | 1.99 | 2.16 | 3.05 | 4.38 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Kapston Facilities Management Ltd | 10 | 4.06 | 22.66 | 29.32% | 16.60 |
| Quess Corp Limited | 10 | 9.10 | 110.70 | 13.56 | 66.02 |
| Security and Intelligence Services Ltd | 10 | 12.93 | 81.53 | 16.54 | 81.17 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 21st March 2018 |
| Issue Closes on:. | 23rd March 2018 |
| Issue Price | Rs.92 |
| Face Value | Rs.10 |
| Minimum Lot | 1200 |
| Minimum Investment | Rs.1,10,400 |
| Issue Constitutes | 26.49% |
| Issue Size | Rs.21.19 cr |
| Market Cap | Rs.79.99 cr |
| Listing at | NSE SME |
| Equity Shares Offered (Fresh) | 11,52,000 |
| Equity Shares Offered (OFS) | 11,52,000 |
| Total Equity Shares Offered (Fresh + OFS) | 23,04,000 |
| Equity Shares Prior to the Issue | 75,42,909 |
| Equity Shares after the Issue | 86,94,909 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 28th March 2018 |
| Initiation of Refunds | on or Before 2nd April 2018 |
| Credit of Equity Shares: | on or Before 3rd April 2018 |
| Listing Date: | on or Before 4th April 2018 |
Subscription Details:
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| HNI | 10,93,200 | 0.16 | 0.66 | 1.07 |
| Retail | 10,93,200 | 0.46 | 0.77 | 1.33 |
| Others | 1,17,600 | 0.00 | 0.00 | 0.00 |
| Employee | ——— | —- | —- | —– |
| TOTAL | 23,04,000 | 0.29 | 0.68 | 1.14 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 4.06 | 22.66 | 29.32% | 16.63 |
Markets Guruji Opinion:
| IPO View | Apply For: | Expected listing Gain: |
|---|---|---|
| Subscribe | Long Term | 10% |
| Check IPO Allotment Status: |
|---|
Bigshare Website (Click on the below Link)http://www.bigshareonline.com/bssipoapplicationstatus.aspx |
| Company Contact Info: |
|---|
| Kapston Facilities Management Limited Plot No.287, MIG-2, IX Phase KPHB, Kukatpally Hyderabad- 500072, Telangana, India. Telephone: +91 9640504050 CIN: U15400TG2009PLC062658 Email id: info@kapstonfm.com Website: www.kapstonfm.com |
| IPO Registrar Info: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED 1st Floor, Bharat Tin Works Building, Opp. Vasant Oasis, Makwana Road, Marol, Andheri East, Mumbai, Maharashtra 400059 Tel: 022 – 6263 8200; Fax: 022 – 6263 8299; Email: ipo@bigshareonline.com; Investor Email: investor@bigshareonline.com; Website: www.bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| CKP FINANCIAL SERVICES PRIVATE LIMITED 906, Jay Antariksh 13/14, Makawana Road, Marol Naka, Andheri (East), Mumbai – 400 059, India Tel No.: +91 9322997964/ 022- 49749802 Email: info@ckpfinancialservices.com Investor Email: investors@ckpfinancialservices.com Website: www.ckpfinancialservices.com |
