Konstelec Engineers Ltd IPO

Konstelec Engineers Limited was originally incorporated as Konstelec Engineers Private Limited as a private limited company under the provisions of the Companies Act, 1956 vide Certificate of Incorporation dated December 05, 1995, issued by the Registrar of Companies, Mumbai. Subsequently the Company was converted from a private limited company to public limited company pursuant to shareholders resolution passed in the Extra-Ordinary General Meeting of the company dated June 30, 2023 and consequently, the name of the Company was changed to Konstelec Engineers Limited and a fresh certificate of incorporation dated August 25, 2023 was issued to the Company by the Registrar of Companies, Mumbai. The Corporate Identification Number of the Company is U45203MH1995PLC095011.

GLOBAL OUTLOOK Global growth has slowed to the extent that the global economy is perilously close to falling into recession-defined as a contraction in annual global per capita income-only three years after emerging from the pandemic-induced recession of 2020. Very high inflation has triggered unexpectedly rapid and synchronous monetary policy tightening around the world to contain it, including across major advanced economies. Although this tightening has been necessary for price stability, it has contributed to a significant worsening of global financial conditions, which is exerting a substantial drag on activity. This drag is set to deepen given the lags between changes in monetary policy and its economic impacts, and the fact that real rates are expected to continue to increase. Asset prices have been in broad, synchronous decline, investment growth has weakened substantially, and housing markets in many countries are worsening rapidly. Shockwaves continue to emanate from the Russian Federation's invasion of Ukraine, especially in energy and other commodity markets. Against this backdrop, confidence has fallen precipitously. The worlds three major engines of growth-the United States, the euro area, and China-are undergoing a period of pronounced weakness, with adverse spillovers for emerging market and developing economies (EMDEs), many of which are already struggling with weakening domestic conditions. As a result of the sharp slowdown in global growth, per capita income is not expected to surpass 2019 levels until at least 2024 in about one-third of EMDEs. Per capita income growth is expected to be slowest where poverty is highest. In Sub-Saharan Africa-which accounts for about 60 percent of the world's poor - growth in per capita income over 2023-24 is forecast to average only 1.2 percent, far less than the pace that would be needed over the remainder of the decade to reach a 3 percent poverty rate by 2030. Soaring inflation in 2022 reflected a combination of demand and supply factors (Ha, Kose, and Ohnsorge 2022; Shapiro 2022). On the demand side, the acceleration of growth during the initial rebound from the 2020 global recession, as well as the lagged effects of earlier macroeconomic support, contributed to persistent price pressures. Price increases were particularly large in sectors such as shipping and air travel, where compositional shifts in demand encountered ongoing capacity constraints and supply chain disruptions (Kalemli-'zcan et al. 2022). On the supply side, shortages of key commodities, exacerbated by Russia's invasion of Ukraine, contributed substantially to higher energy and food prices. In some countries, tight conditions and mismatches in labor markets further added to rising wages and higher input and production costs. Finally, many countries experienced large currency depreciations that passed through into higher import, producer, and consumer prices. The higher share of food in consumer spending has caused inflation to accelerate more in low-income countries compared to other EMDEs. INDIAN ECONOMY The Indian economy, however, appears to have moved on after its encounter with the pandemic, staging a full recovery in FY22 ahead of many nations and positioning itself to ascend to the pre-pandemic growth path in FY23. Yet in the current year, India has also faced the challenge of reining in inflation that the European strife accentuated. Measures taken by the government and RBI, along with the easing of global commodity prices, have finally managed to bring retail inflation below the RBI upper tolerance target in November 2022. However, the challenge of the depreciating rupee, although better performing than most other currencies, persists with the likelihood of further increases in policy rates by the US Fed. The widening of the CAD may also continue as global commodity prices remain elevated and the growth momentum of the Indian economy remains strong. The loss of export stimulus is further possible as the slowing world growth and trade shrinks the global market size in the second half of the current year. Macroeconomic and Growth Challenges in the Indian Economy: The impact of the pandemic on India was seen in a significant GDP contraction in FY21. The following year, FY22, the Indian economy started to recover despite the Omicron wave of January 2022. This third wave did not affect economic activity in India as much as the previous waves of the pandemic did since its outbreak in January 2020. Mobility enabled by localised lockdowns, rapid vaccination coverage, mild symptoms and quick recovery from the virus contributed to minimising the loss of economic output in the January-March quarter of 2022. Consequently, output in FY22 went past its pre-pandemic level in FY20, with the Indian economy staging a full recovery ahead of many nations. The experience with the Omicron variant engendered a cautious optimism that it was possible to stay physically mobile and engage in economic activities despite the pandemic. FY23 thus opened with a firm belief that the pandemic was rapidly on the wane and that India was poised to grow at a fast pace and quickly ascend to the pre-pandemic growth path. INFRASTRUCTURE SECTOR IN INDIA 1. High Budgetary Allocation For Infrastructure: In Union Budget 2022-23, the government has given a massive push to the infrastructure sector by allocating Rs. 10 lakh crore (US$ 130.57 billion) to enhance the infrastructure sector. The government expanded the ational Infrastructure Pipeline (NIP)' to 9,335 projects. 217 projects worth Rs. 1.10 lakh crore (US$ 15.09 billion) were completed as of 2020. 2. Increasing Private Sector Involvement: The private sector is emerging as a key player across various infrastructure segments, ranging from roads and communications to power and airports. Private investment into physical and social infrastructure is key to putting India in a high growth trajectory, which will make it a US$ 5 trillion economy by 2024-25. Yearly private equity (PE) and venture capital (VC) investment in India is expected to surpass US$ 65 billion in 2025. 3. Improvement In Logistics In 2020, India's logistics sector was one of the largest worldwide worth US$ 215 billion and increased at a CAGR of 10%. Indian logistics market is estimated to touch US$ 320 billion by 2025.

Konstelec Engineers Limited was incorporated on December 05, 1995 as a private Limited Company and started business operations as Design Engineering Company. Over the years, It has expanded its services, constantly upgraded its technologies, systems, and processes and diversified its business operations. As an EPC company, It specializes in delivering full-scale project management, procurement support, and detailed engineering services for various kinds of electrical infrastructure projects across India and abroad. With a skilled team, strong project execution capabilities, and a client-centric focus, it is committed for delivering high-quality, safe, and innovative solutions that meet its clients' specific needs. Its expertise covers the entire project lifecycle, ensuring timely delivery and successful outcomes for even the most complex projects. At present, the company is in the business of Engineering, Procurement, and Construction/ Commissioning (EPC) contractors and is engaged in the business of offering full range of EPC services in India and abroad. Its services find applications across several processing and various kinds of manufacturing industries such as oil & gas, refinery, steel, cement, pharmaceuticals, textile, hospital, health care and commercial complexes, domestically and internationally. The Company has designed, developed, and executed several complex and integrated projects requiring cutting-edge electrical, instrumentation and automation systems. Its key offerings include engineering designs and drawings, procurements, operations and maintenance, project management and construction and commissioning. The Company provides one-stop solution to its clients for various kinds of engineering projects. Its expertise includes Electrical Installation, Solar Power Plant Setup, Instrumentation & Automation.