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CaptionDateDescription
New Listing 10-May-2019
Notice No. 20190510-26 Notice Date 10 May 2019Category Company related Segment SMESubject Listing of Equity Shares of Evans Electric LimitedAttachments Annexure I.pdf ; Annexure II.PDF ;ContentTrading Members of the Exchange are hereby informed that effective from Monday, May 13, 2019, the Equity Shares of Evans Electric Limited shall be listed and admitted to dealings on the Exchange in the list of MT Group of Securities. Further in terms of SEBI circular No. CIR/MRD/DP/02/2012 dated January 20, 2012; the scrip will be in Trade-for-Trade segment for 10 trading days. Name of the companyEvans Electric LimitedRegistered Office:430, Orchard Mall 3rd Floor Royal Palms Estate, Aarey Milk Colony, Goregaon (East)Mumbai -400065MaharashtraTel :+91-022-28729506Email : cs@evanselectric.co.inWebsite : www.evanselectric.co.inNo. of Securities1372000 Equity Shares of Rs.10/- each fully paid upDistinctive Number range1 To 1372000Scrip ID on BOLT SystemEVANSAbbreviated Name on BOLT SystemEVANSScrip Code542668ISIN No.INE06TD01010Market Lot2000Issue Price for the current Public issueRs. 52/- per share (Face Value of Rs. 10/- and premium of Rs. 42/-)Date of Allotment in the public issue:May 8, 2019Pari PasuYesFinancial YearMar-31Lock in detailAs per Annexure IShareholding PatternAs per Annexure II
Evans Electric coming with an IPO to raise Rs 1.93 crore 27-Apr-2019

Evans Electric:

  • Evans Electric is coming out with an initial public offering (IPO) of 3,72,000 equity shares of face value of Rs 10 each at a fixed price of Rs 52 per equity share.
  • The issue will open on April 30, 2019 and will close on May 03, 2019.
  • The shares will be listed on SME Platform of BSE.
  • The share is priced 5.2 times higher to its face value of Rs 10.
  • Book running lead manager to the issue is Hem Securities.
  • Compliance Officer for the issue is Deepak Y Patil.

Profile of the company:

The Company was originally incorporated as ‘Evans Electric Limited’ on December 29, 1951 under the provisions of the Companies Act, 1913 with the Registrar of Joint Stock Companies, Bombay. Further, pursuant to Special Resolution passed by the shareholders at the Extra Ordinary General Meeting held on February 18, 2019, the company was converted into a Public Limited Company and consequently the name of the Company was changed from ‘Evans Electric Private Limited’ to ‘Evans Electric Limited’ vide a fresh Certificate of Incorporation dated March 13, 2019 issued by the Registrar of Companies, Mumbai.

The Company is engaged in the business of repairing, re-winding and re-designing including in-house manufacturing of replacement components of small, medium and large electric motors, generators and transformers, which are used in Thermal, Hydro, Diesel, Gas & Nuclear Electric Power Generation, Petroleum Refineries, Chemicals & Fertilizers, Cement Plants, Steel Plants, Tyre Manufacturing, Sugar Mills, Oil & Gas Exploration, Shipping, Mining and Railway Traction. The company on the basis of the damage and assessment of the repairs or rewinding required for any AC & DC Machines, design, develop and manufacture components in-house for carrying out said re-winding and repairing work of aforementioned items. Some of the replacement components manufactured by it includes Coils, Insulators, Slip Rings, Retaining Rings, Carbon Brushes, Brush Holders, Complete winding kits, Insulation Components, Wedges, Packers and stampings, as well as allied specialized tools and equipment.

Proceed is being used for:

  • Meeting working capital requirements
  • General corporate purpose
  • Meeting the issue expenses

Industry Overview:

With the rapid the rise in economic growth and living standards more & more people used Generators, Motor and Pump sets in Residential, Commercial, Industries, Hospital, and Agriculture, Institution, Govt. establishments etc. which becomes a necessity in daily life. And since frequent power failure & long duration load shedding where, these devices are more needed. And with the continual used, these devices became defective and inefficient due to wear & tear in the mechanical parts, and deteriotion in electrical insulation & Lub oil etc. In order to have a smooth, optimum and efficient operation, the devices need timely repair & preventive maintenance services. Therefore, units catering to Repair, Service and maintenance of these devices have very good scope.

With the rapid industrialization, modernization and increased commercial activity, coupled with expansion of electrification in rural and urban areas, Generators, motor operated devices and pumps finds extensive and inevitable application. And electric motors are prime mover of modern industries besides they are also find used in consumer products in domestic, commercial, institution, Govt. establishment, hospitals, Diagnostic center etc. And for domestic & commercial application, electric motors are available in Single phase, for industrial application in three phases. The requirement of Generators is both as Prime power as well as standby (backup). The Govt. has also set to achieved additional installed capacity of 100,000 MW by 2012 after taking into account the ever increasing electricity consumption and to bridge ever increasing demand-supply gap.

Pros and strengths:

Quality Compliance: Quality of the work is very important for customer satisfaction and client retention. By providing best quality work at affordable prices and in a timely manner also helps in enhancing the goodwill of the Company. The Company is ISO 9001: 2015 certified for its quality work and procedures. The company also has Membership of EASA (Electrical Apparatus Service Association).

Focus on customer satisfaction: Customer satisfaction is very important for the success and growth of any organization. Providing good quality work at affordable pricing is very important for the customer satisfaction and customer retention. The main focus of the company is on providing the best quality services to the clients at affordable costs. By attaining customer satisfaction, the company is able to retain the customer which provide repeated business and will also help the organization to grow. It also offers onsite repair and re-winding for complex machineries which cannot be brought to the factory premises such service has helped the clients saving time as well as cost involved in dismantling and further installation of such complex transformers, motors and generators.

Experienced team of professionals: The company’s Board of Directors consists of five experienced personnel. Its Promoter, Chairman and Non-Executive Director, Ivor Anthony Desouza having experience of 51 years in the field of Electrical Engineering and its Managing Director Nelson Lionel Fernandes has experience of 34 years in field of management and business activities of Company, its Whole Time Director Iyleen Matilda Fernandes has experience of 19 years in field of Accounts and Finance. Apart from its management, the company has skilled in-house trained Engineers, skilled Technicians and associated Staff to cope up its business needs. It has 4 Engineers and 10 skilled Technicians. It follows trend for Regular Training sessions on Weekly Basis for bring out the best in Engineers & skilled Technicians and to drive up operational Efficiency under supervision of Ivor Anthony.

Risks and concerns:

Significant revenue comes from few clients: The company derives and may continue to derive a significant portion of its revenue from a relatively limited number of clients. During the fiscal year ended 2018 and 2017, it derived, 51.37% and 73.64%, respectively, of its revenue came from its top five clients, which includes Bokaro Power Supply Co. (P) Ltd, Saif Powertec, Bharat Petroleum Corp Ltd, etc. Significant dependence on certain clients may increase the potential volatility of its results of operations, if it is unable to expand the volumes of its business with its existing clients, maintain its relationship with its key clients or diversify its client base. Further, the company may experience material fluctuations or decline in its revenue and reduction in its operating margins if its clients decrease the demand of services it provides or terminate all services due to any reason including those beyond its control, including adverse business and financial conditions. The loss of any of its key client or reduced demand from any of such clients for its services could further materially and adversely impact its results of operations and financial conditions.

High working capital requirements: Its business requires significant amount of working capital and major portion of its working capital is utilized towards debtors, and inventories. As on February 04, 2019, it has been sanctioned working capital of 78.80 lakhs from Union Bank of India. Its growing scale and expansion, if any, may result in increase in the quantum of current assets. Its inability to maintain sufficient cash flow, credit facility and other sources of funding, in a timely manner, or at all, to meet the requirement of working capital or pay its debts, could adversely affect its financial condition and result of its operations.

Stiff competition: The company operates in an industry which is highly fragmented and competitive. Its continued success depends on its ability to compete effectively against its existing and future competitors. With the potential influx of new competitors, the company’s ability to retain its existing clients and to attract new clients is critical to its continued success. As a result, there can be no assurance that it will not encounter increased competition in the future. Nor can there be any assurance that the Company will, in light of competitive pressures, be able to remain profitable or, if profitable, maintain its current profit margins.

Outlook:

Evans Electric is engaged in the business of repairing, re-winding and re-designing including inhouse manufacturing of replacement components of small, medium and large electric motors, generators and transformers, which are used in Thermal, Hydro, Diesel, Gas & Nuclear Electric Power Generation, Petroleum Refineries, Chemicals & Fertilizers, Cement Plants, Steel Plants, Tyre Manufacturing, Sugar Mills, Oil & Gas Exploration, Shipping, Mining and Railway Traction. On the flip side, the company’s operations are subject to high working capital requirements. Its inability to maintain sufficient cash flow, credit facility and other sources of funding, in a timely manner, or at all, to meet the requirement of working capital or pay its debts, could adversely affect its financial condition and result of its operations.

The company is coming out with a maiden IPO of 3,72,000 equity shares of Rs 10 each at a fixed price of Rs 52 per share to mobilize Rs 1.93 crore. On the performance front, during the financial year 2017-2018 the net revenue from operation of the Company decreased to Rs 561.16 Lakhs as against Rs 1060.49 Lakhs in the Financial Year 2016-2017 representing a decrease of 47.08%. This decrease was majorly due to decrease work order not received as had received in Financial Year 2016-2017. Net Profit after tax for the Financial Year 2017-2018 increased to Rs 46.30 lakhs as compared to Rs 236.69 Lakhs financial year 2016-2017. 

The company is planning to grow its business primarily by focusing on the optimal utilization of resources. The main raw materials used in its services are coils, brushes, insulators etc which the company is currently manufacturing at its facility located the Palghar. By making best and optimum utilization of the resources it can provide its customer better services at reasonable cost and also maintain the operating margins of the Company. Over the period it has developed a team of skilled technicians and engineers who are capable of looking after many complex and large machines. With the help of its team the company is continuously working towards making best possible use of the resources and providing the customers with quality work at efficient pricing.

(Financials in Rs Million)

ParticularsMar 2018Mar 2017
Net Sales56.12 106.05 
Total Income58.69 107.16 
PBIDT10.85 37.73 
PBT6.61 34.39 
PAT4.63 23.67 
Reserves and Surplus65.72 61.72 
Net Worth70.72 66.72 
Total Debt0.00 4.78 
ROCE9.69 59.57 
RONW6.74 42.65 
PATM(%)8.25 22.32 
CPM(%)14.85 25.22 
CEPS166.72 534.98 
Enterprise Value-35.26 -24.44 

 

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