About the Company:
GP Eco Solutions India Limited (GESIL), established in 2010, specializes in delivering solar energy solutions. The company offers a full range of engineering, procurement, and construction (EPC) services tailored for both commercial and residential sectors. GESIL also engages in the distribution of solar inverters and solar panels, positioning itself as a comprehensive provider of integrated solar energy solutions.
Product and Brand Offerings:
GESIL markets hybrid solar inverters and lithium ferro-phosphate (LFP) batteries under its proprietary brand, "Invergy." The Invergy brand is also involved in the original equipment manufacturing (OEM) of hybrid and LFP products. The company adheres to strict quality and reliability standards, ensuring seamless and efficient manufacturing processes.
Authorized Dealerships:
GESIL is an authorized distributor for several prominent companies, including:
- Sungrow India Pvt Ltd (Sungrow) for solar inverters in North India.
- Saatvik Green Energy Private Limited (Saatvik) for solar panels in North India.
- LONGi Solar Technology Co. Ltd (LONGi) for solar panels in North India.
Revenue Composition:
Approximately 15% of GESIL's revenue is derived from its Invergy-branded products, with the remainder coming from third-party brands. The company's sales model is predominantly B2B, accounting for about 99.9% of its transactions, while only 0.1% comes from B2C sales as of December 31, 2023.
EPC Services:
Although GESIL provides extensive EPC services, this area contributes less significantly to the company’s overall business compared to the distribution of solar inverters and solar panels.
Promoter Holding:
- Pre-Issue Share Holding: 86.4%
- Post-Issue Share Holding: 62.23%
- Promoters: Mr. Deepak Pandey, Mrs. Anju Pandey, and Mr. Astik Mani Tripathi.
Objectives of the Issue:
The company plans to allocate the net proceeds from the IPO towards:
- Meeting working capital requirements.
- Investing in its subsidiary, Invergy India Private Limited (IIPL), for the acquisition of plant and machinery, construction and civil works, and other miscellaneous assets.
- Covering general corporate expenses.
Summary of Financial Information:
| Period Ended | 31-Dec-23 | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
|---|---|---|---|---|
| Assets | 4,728.75 | 4,715.19 | 1,904.89 | 1,429.81 |
| Revenue | 7,858.88 | 10,447.63 | 8,352.99 | 4,652.91 |
| Profit After Tax | 473.27 | 369.82 | 277.17 | 96.94 |
| Net Worth | 1,298.08 | 824.81 | 454.98 | 177.81 |
| Reserves and Surplus | 578.08 | 804.81 | 434.98 | 157.81 |
| Total Borrowing | 1,544.79 | 1,316.52 | 517.55 | 351.37 |
Comparison with the Listed Peers:
| Company Name | EPS (Basic) | EPS (Diluted) | NAV (per share) (Rs) | P/E (x) | RoNW (%) | P/B (x) |
|---|---|---|---|---|---|---|
| GP Eco Solutions India Limited | 5.14 | 5.14 | 11.46 | - | 57.79 | 8.2 |
| Sungarner Energies Limited | 6.35 | 6.35 | 19.10 | 59.14 | 23.18 | - |
Key details of the IPO:
- IPO Dates: 14 to 19 June 2024
- Price Band: Rs. 90 to Rs. 94 per share
- Lot Size: 1200 shares
- Total Issue Size: Rs. 30.79 Cr
- Amount Per Lot: Rs. 1,12,800
- Retail Quota: 31.50%
- GMP: Rs. 130 per share (Only for information purposes)
Note: For additional information & risk factors please refer to the Red Herring Prospectus
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Disclaimer: We are not SEBI registered. All the views are personal and only for educational purposes. Do your due diligence before making any trading or investing decisions. The data provided in this blog post is for illustrative purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
