image depicting infrastructure company set up
The budget of 2023 has laid huge importance to the infrastructure industry through the highest capital allocation for the much-needed infrastructure push in the coming years. This has made it a ripe opportunity for infrastructure companies to tap the market buzz and attract investor participation.
Following this buzz, the latest company to join the IPO market is Udayshivakumar Infra Limited which will open for subscription on 20th March 2023 and will close on 23rd March 2023.
Here are all the essential details of Udayshivakumar Infra Limited IPO, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
The key details of the Udayshivakumar Infra Limited IPO are as under.
The size of the IPO and different categories of the issue are:
| Category | Details |
| IPO Opening Date | 20th March 2023 |
| IPO Closing Date | 23rd March 2023 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face Value of shares | Rs. 10 per share |
| IPO Price Band | Rs. 33 – Rs. 35 per share |
| IPO Size | Rs. 66 crores (20,00,000 shares) |
| Offer For Sale | – |
| Fresh Issue | Rs. 66 crores (20,00,000 shares) |
The important dates for the Udayshivakumar Infra Limited IPO are highlighted below:
| Event | Date |
| Opening date | 20th March 2023 |
| Closing Date | 23rd March 2023 |
| Allotment date | 28th March 2023 |
| Refund Date | 29th March 2023 |
| Share Credit Date | 31st March 2023 |
| Listing Date | 3rd April 2023 |
Investors can subscribe to the shares of Udayshivakumar Infra Limited IPO in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
| Category | Details |
| Investments in lots (for retail investors) | Minimum – 1 lot Maximum – 13 lots |
| Shares | Minimum – 428 Maximum – 5564 |
| Investment amount | Minimum – Rs. 14,980 Maximum – Rs. 1,94,740 |
The categories of eligible investors and their share in the IPO are tabled below:
| Category of Investor | Reservation Percentage |
| QIB (Qualified Institutional Buyers) | 10% |
| NII (Non-Institutional Bidders) | 30% |
| RII (Retail Individual Investors) | 60% |
The key objectives of the IPO are stated below:
Udayshivakumar Infra Limited is engaged in the business of construction of roads which includes constructing State Highways, District Roads, Smart Roads under Municipal Corporations, Smart Roads under PM’s Smart City Mission projects, National Highways, Bruhat Bengaluru Mahanagara Palike (BBMP), and Local Area Roads in various Taluka Places, etc.
The company operations and projects are primarily centered in Karnataka and are active in bids for various infrastructure projects like Roads, Bridges, Irrigation & Canals Industrial Area construction in Karnataka. The company is also engaged in infrastructure projects for National Highways, State Highway Development Corporations Ltd., (SHDP), and other Government Departments in Karnataka like the Karnataka Public Works Ports & Inland Water Transport Department (KPWP & IWTD), Davanagere Harihara Urban Development Authority (DHUDA), and many more.
The company has successfully executed over 30 projects as of 31st August 2022 and currently has 25 ongoing projects with an approximate order book value of ₹853.88 crore.
The company is also looking to scale its operations and project reach through a joint venture with other infrastructure companies.
Udayshivakumar Infra Limited financials are given in the table below:
| Year | Total Assets (Rs. In crores) | Operating Revenue (Rs. In crores) | Profit after tax (Rs. In crores) | Basic EPS(Rs.) | Diluted EPS(Rs.) | RONW |
| Mar-2022 | 163 | 185 | 12.15 | 3.33 | 3.33 | 17.78% |
| Mar-2021 | 147 | 210 | 9.31 | 2.55 | 2.55 | 16.59% |
| Mar-2020 | 158 | 194 | 10.49 | 2.87 | 2.87 | 22.38% |
(Source: RHP)
Some of the key strengths of Udayshivakumar Infra Limited that investors can take note of are:
| Category | Details |
| Business model | The company has the benefit of strong execution capabilities and vital industry experienceThe company has a strong order book consisting construction of roads, flyovers, bridge, irrigation projects from various government agencies and local bodies along with private developers. Furthermore, the company also has an in-house design and engineering team for the smooth execution of the projects. |
| Customer base | The company has strong long-standing relationships with various government agencies like the PWD, NH, (Morth), BBMP, KBJNL, VJNL, KIADB, DHUDA, KPWP & IWTD, and various local bodies.They have had consistent growth in their order book since their inception and are now expanding their geographical footprint. |
Here are some of the risks that investors of Udayshivakumar Infra Limited IPO should know:
| Category | Details |
| Business viability and profitability | The company’s business is focused in Karnataka and is heavily dependent on developmental and infrastructural projects in the state The company relies heavily on its ability to source and maintain a stable and sufficient supply of raw materials at acceptable prices for its efficiency, competitive edge, cost-effective output, and profitability.Any default or delay in customer payments will directly have an adverse impact on the company profits and cash flows. |
| Competition | The company operates in a highly competitive and fragmented industry which leads to huge competition from many large and small players. Any delay or failure to successfully complete projects will lead to loss of business, and give rise to adverse financial conditions, and business prospects. |
As of March 20th, 2023, the grey market premium for the shares of Udayshivakumar Infra Limited is approximately Rs. 10 as per market observers.
The company has many ongoing projects and a stable order book that boosts the confidence of its promoters and shareholders. The company has also reported a dip in revenue growth for the previous year as compared to 2021, however, its PAT margins and ROE are more or less in line with its listed peers. Based on the past year’s financials this IPO seems to be fully priced and hence can be considered for long-term investment.
Investors can invest in this IPO through the Fisdom app.
As per the order book available with Udayshivakumar Infra Limited as of December 2022, the company has 30 ongoing projects worth Rs. 853.88 crores approximately and new orders allotted worth Rs. 436.51 crores approximately.
The listed peers of Udayshivakumar Infra Limited include KNR Constructions Limited, PNC Infratech Limited, HG Infra Engineering Limited, and IRB Infrastructure Developers Limited.
The debt-equity ratio of Udayshivakumar Infra Limited is 0.45 as of March 2022.
Currently, the entire shares are held by the promoter and the promoter group. However, post IPO, they will hold approximately 65.93% of the shares of the company while the balance 34.07% will be held by the general public.
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