Positron Energy Ltd. (PEL) has carved a niche for itself in the Indian oil and gas industry by providing comprehensive management and technical advisory services. Initially focused solely on advisory roles, PEL expanded its operations in FY 2018-19 by venturing into coal bed methane (CBM) gas aggregation. The company further broadened its horizons in July 2022, aggressively entering the natural gas aggregation business to meet the growing demand from industrial units across India.
PEL’s services span the entire gas distribution spectrum, including commercial and financial advisory, project management, and operations and maintenance (O&M) services. The company’s track record includes the successful aggregation of approximately 35 million standard cubic meters (MMSCM) of natural gas, demonstrating its technical expertise and reliability in the industry.
With ISO 9001:2015 and ISO 45001:2018 certifications, PEL ensures high-quality consultancy and O&M services while emphasizing safety and environmental sustainability. The company’s innovative approach includes using cleaner energy sources like solar and natural gas in its operations, reflecting its commitment to reducing environmental impact.
Beyond its core operations, PEL has secured client membership with the Indian Gas Exchange (IGX), allowing it to source natural gas on demand and manage short-term fluctuations in supply. Additionally, PEL has entered into a collaboration with ICOM North America LLC to install dual-fuel LNG conversion systems in heavy trucks in India, further advancing its environmental sustainability goals.
PEL is launching its maiden IPO through a book-building process, offering 2,048,400 equity shares priced between INR 238 and INR 250 per share. The IPO aims to raise INR 51.21 crore at the upper price band, with subscriptions open from August 12 to August 14, 2024. The minimum application size is 600 shares, and the shares will be listed on the NSE SME Emerge platform.
The proceeds from the IPO will primarily fund working capital requirements (INR 38.20 crore), with the remainder allocated to general corporate purposes. Post-IPO, PEL’s paid-up equity capital will increase from INR 5.55 crore to INR 7.60 crore, giving the company a market capitalization of INR 190.01 crore at the upper price band.
Over the past three fiscal years, PEL has shown impressive growth. In FY24, the company reported a total income of INR 135.42 crore and a net profit of INR 8.79 crore, representing a PAT margin of 6.52%. PEL’s Return on Capital Employed (RoCE) surged to 61.55% in FY24, highlighting its strong operational efficiency. With an average EPS of INR 6.90 and an average RoNW of 44.74%, PEL’s IPO is priced at a P/E ratio of 21.63, indicating a fully valued offering.
PEL’s unique positioning in the oil and gas sector, coupled with its robust financial performance, makes this IPO an attractive option for investors with a medium to long-term perspective. The company’s strategic expansion into natural gas aggregation and its commitment to sustainability further bolster its growth prospects in an increasingly competitive market.
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