Sugs Lloyd Limited SME IPO Closing Today
Applying 👍
Company is an Electrical Transmission and Distribution
(46% Revenue), Solar EPC (43% Revenue) and India's Largest Manufacturer Of Fault Passage Indicators (FPIs)
Company Raising 85.6 Cr, Majorly for Working Capital, the backcalculation suggests approx 70-80% growth
Hence priced at roughly 10.5× FY26
Company has started operations in Transmission and also bidded for Battery Energy Storage Systems (BESS)
The Fault Passage Indicator (FPI) is an unique product in which it competes with Schneider and Siemens (This equipment is used to easily locate faults in Electrical lines used by Discoms and Private utilities, company was the Pioneer in bringing loop automation and FPIs in India);
Company claims 50% market share in India
Clientele : BREDA, NTPC, TATA Power, DPHC, Indian Railways, Multiple State Discoms, Etc.
Promoter quality is strong, Good sectors and outlook, Attractive Valuations
Good thing to note is the Company and Promoters have no pending legal Litigations, Tax matters which is rare In these businesses
Has a management interaction (Posting the interview above this post);
The management is seeing no issues on the trade Recievables Part
Few risks include
Client Concentration, Some stretched working capital and Dependance on Government
Sad to see that the company opting for SME IPO, could have easily came in Mainboard in next 6 months