On Monday, March 20, 2023, public subscription for Udayshivakumar Infra Ltd’s initial public offering (IPO) will begin, and the three-day share sale will end on Wednesday, March 23. On March 17, 2023, a bid period for anchor investors officially began. The set price range for the issuance is 33 to 35 pence per share.
The latest offering of 20,000,000 equity shares with a face value of Rs 10 each totals Rs 66 crore in the Udayshivakumar Infra IPO. The issue’s proceeds will be put towards new needs for working capital as well as general corporate goals. A bidder will be able to submit applications in lots, and one lot of the IPO consists of 428 business shares.
According to market watchers, shares of UdayShivakumar Infra are currently trading at a GMP of 10 in the black market. On April 3, 2023, the company’s shares are anticipated to list on the BSE and the National Stock Exchange (NSE).
“For the past three fiscal years, the company’s sales and profit growth has been erratic. In comparison to its competitors, the company’s 13.41% EBITDA margins and 6.54% PAT margins as of FY22 appear drab. The asking price per share, based on FY22 earnings, is roughly 10 times the upper band of the offering price, which sounds reasonable. Abhay Doshi, co-founder of UnlistedArena, stated that a minor issue and a sizable order book could spark considerable interest.
Road construction is the business of Udayshivakumar Infra. It submits bids for construction projects involving industrial areas, highways, bridges, and canals in Karnataka, as well as for government agencies. The company’s promoter is Udayshivakumar. As of August 31, 2022, the company and its former partner firm, M/s. Udayshivakumar, had completed over 30 different projects in and around the state of Karnataka. The organization is engaged in 25 active projects.
MAS Services is the registrant of the initial share offering, while Saffron Capital Advisors is the principal bookrunner of the offer.