Preparing for Smart Grid Growth
Allied Engineering Works, a 40-year-old Delhi-based company, has filed draft IPO papers seeking ₹400 crore. The firm specializes in electronic, smart energy meters, and cables, aiming to capitalize on India’s smart meter expansion.
Company Overview and Scale
- Operates three facilities in the Delhi-NCR area with over 450 employees, including more than 100 engineers.
- Supplies advanced meters with dual communication capabilities and solar/submersible cables.
- Has supplied nearly 3 million smart meters to six states under government utility schemes.
Financial Strength
- Revenue reached ₹353 crore in FY2024, nearly double the previous year.
- Net profit stood at ₹44 crore, reflecting strong operating margins.
- Low debt-to-equity ratio highlights financial stability and disciplined expansion.
Use of IPO Proceeds
- ₹116.75 crore allocated to setting up a gas and water meter plant in Kundli.
- ₹99.7 crore for a power meter facility in Rai.
- ₹120 crore reserved for working capital, with remainder for general corporate uses.
- A portion may go toward a pre-IPO fundraising round.
Strategic Advantages and Risks
- Leading position in smart grid technology with IoT-enabled meters that aid utilities in efficiency and analytics.
- Certifications from national and international bodies support credibility.
- Faces competition and evolving technology pressures; successful plant expansions will be key.
The IPO offers exposure to the smart infrastructure theme in India. The company’s track record and financial strength support optimism, while execution and tech evolution remain key watchpoints.