The company has fixed a price band of Rs 33-35 per equity share and investors can bid for 428 shares in 1 lot and in multiples thereof.
About 60% of the offer is reserved for retail investors, while 30% is set aside for non-institutional investors. Meanwhile, 10% of the issue is reserved for Qualified institutional buyers (QIB).
Ahead of subscription, the grey market premium (GMP), which indicates the premium commanded by shares in the unlisted market, is at Rs 7.
The company said proceeds of the issue will be used to fund incremental working capital requirements and general corporate purposes. Shares of the company will list on both BSE and NSE.
Udayshivakumar Infra is floating its IPO at a time when the market sentiments are unfavourable and it may hurt the company at the time of listing.
“With Nifty down by around 10% from the peak and underperforming other markets in 2023, the sentiments have turned negative. This is not a favourable time for IPOs, however, attractively-priced issues will attract investors,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.Udayshivakumar Infra is in the business of construction of roads. It bids for roads, bridges, canals, and industrial area construction projects in Karnataka, including government departments.
The company has 46 work orders in hand, having an aggregate order book value of Rs 1,291 crore, as of the December quarter. Out of this, 30 orders are ongoing, and 16 are new. They are yet to start.
The company clocked a revenue of Rs 185 crore in FY22, while profit stood at Rs 12 crore. Over FY20-22, it has seen a mixed growth trend, wherein revenue de-grew by 2.1% CAGR while EBITDA was flat and PAT grew by 7.6% CAGR.
Saffron Capital Advisors is the lead book-running manager and MAS Services is the registrar to the issue.
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