Udayshivakumar Infra Limited is a Karnataka-based construction and infrastructure company. It is a closely-held company, where the promoter Udayshivakumar, holds 98.97% of the total stake. In a bid to raise money for working capital requirements, the company is planning to issue fresh equity shares to the public via an IPO. It recently filed the final red herring prospectus (RHP) with the SEBI on March 13, 2023. Continue reading to find out more about this public issue.
Company Overview
Founded in 2019, Udayshivakumar Infra Limited is in the business of the construction of roads, bridges and canals. Though the company was formally formed in 2019, the promoter has more than 24 years of experience in the execution of infrastructure projects. Based out of Karnataka, all of Udayshivakumar Infra Limited’s projects are concentrated within the state. In fact, the company is even enlisted as a special class contractor with the Government of Karnataka.
The company currently has 5 ongoing projects in the Ajampura, Belagavi, Shahabad and Jamkhandi locations. As of August 31, 2022, Udayshivakumar Infra Limited has completed more than 30 different projects across the state of Karnataka.
Open Demat Account with us to start investing!
Company Financials
The final red herring prospectus filed by the company contains comprehensive financial information up to the quarter that ended September 30, 2022. Here are some of the key financial metrics from the data published in the prospectus.
(figures are in ₹ crores)
|
Particulars
|
As of September 30, 2022 |
FY22 |
FY21 |
FY20 |
| Equity Share Capital |
36.5 |
36.5 |
36.5 |
36.5 |
| Net Worth |
78.34 |
68.32 |
56.18 |
46.86 |
| Total Borrowings |
39.45 |
26.48 |
30.6 |
33.95 |
| Operating Revenue |
106.61 |
185.62 |
210.39 |
193.6 |
| EBITDA |
17.31 |
24.88 |
23.63 |
25.06 |
| Profit After Tax |
10.01 |
12.14 |
9.31 |
10.48 |
| Diluted Earnings Per Share (EPS) |
2.75 |
3.33 |
2.55 |
2.87 |
| Return on Equity (RoE) |
12.79% |
17.78% |
16.59% |
22.38% |
| Return on Capital Employed (RoCE) |
12.62% |
20.71% |
21.74% |
23.91% |
| Net Asset Value (NAV) per equity share |
21.46 |
18.72 |
15.39 |
12.84 |
Note: Except for the figures listed under Diluted EPS, Return on Equity, Return on Capital Employed and NAV per equity share, all others are expressed in ₹ crores.
Get ready to invest: Apply in the best Upcoming IPOs now!
Key Strengths of the Company
Being a company that has over 24 years of experience in the infrastructure and construction industry, Udayshivakumar Infra Limited has developed certain strengths. Here’s what they are.
- Rich experience and extremely focused approach in the construction of roads, bridges and flyovers
- Huge order book of more than ₹1,29,038 lakhs from the Government of Karnataka as of December 2022
- Excellent project management and execution capabilities
- Highly experienced management
Key Risks for the Company
Just like any other company, Udayshivakumar Infra Limited also has a few risks that it faces. Let’s take a quick look at a few of them.
- Business is primarily concentrated within the state of Karnataka
- Major portion of the business revenue is from a few clients
- Significant revenue is from civil construction
- Business requires multiple statutory and regulatory permits, approvals and licences to function normally
Details of the IPO
In addition to filing the final RHP, Udayshivakumar Infra Limited has also announced details like the opening and closing dates of the issue and the IPO pricing, among others. According to the company announcement, the public issue is slated to open for subscription on March 20, 2023. The issue will come to a close on March 23, 2023.
The company has decided to price its shares within a band of ₹33 to ₹35 per equity share. The total size of the public issue comes up to ₹66 crores, which the company plans to use to achieve the objectives stated in the red herring prospectus. There’s no OFS (Offer For Sale) component to this public issue from the promoter.
The minimum lot size of the IPO is 428, which means that investors desirous of subscribing to this issue would have to bid in multiples of 428. A major portion of the company’s public issue, 60% to be exact, has been reserved exclusively for retail investors. About 30% of the issue has been set aside for Non-Institutional Investors (NIIs), whereas the remaining 10% is for Qualified Institutional Buyers (QIBs).
Objects of the Offer
Since the entire IPO is a fresh issue of shares, all the proceeds from the public issue would go to the company. According to the red herring prospectus, Udayshivakumar Infra Limited plans to use the proceeds to satisfy the following objectives.
- To fund the working capital requirements of the company
- To fund general corporate activities
Conclusion
Unlike most other public issues, the Udayshivakumar Infra Limited IPO primarily targets individual investors rather than institutional investors. This is one of the reasons why the pricing of the issue has been restricted to ₹33 to ₹35 per equity share. Setting such a low price band makes it very affordable for investors.
The Udayshivakumar Infra Limited IPO opens for subscription on March 20, 2023, which is just a few days from now. So, if you’re interested in investing in it, you need to open a demat account right away if you don’t have one. Visit the website of Motilal Oswal today to instantly open a 2-in-1 trading and demat account via a paperless process. With the account up and running, you can invest in this upcoming IPO 2023 without any hassles.
Financial Calculators: SIP Calculator | SWP Calculator | Compound Interest Calculator | EMI Calculator | FD Calculator | Retirement Calculator | Option Value Calculator | Inflation Calculator | Lumpsum Calculator
Popular Stocks: ICICI Bank Share Price | HDFC Bank Share Price | CDSL Share Price | UPL Share Price | TCS Share Price | BHEL Share Price | Trident Share Price | IRFC Share Price | Adani Power Share Price