Udayshivakumar Infra Ltd's initial public offer (IPO) will open for subscription on Monday, March 20, and close on Thursday, March 23. The company has fixed the price band at ₹33 to 35 per equity share for the proposed initial public offer.
Investors can bid for a minimum of 428 equity shares and in multiples thereafter.
The public offering, which has a face value of ₹10 per equity share, consists of a fresh issue of ₹66 crore. There is no offer-for-sale (OFS) part of the offer.
According to company's Draft Red Herring Prospectus (DRHP), the net proceeds from the issue will be utilised towards funding incremental working capital requirements of the company, and general corporate purposes.
Saffron Capital Advisors Private Ltd is the sole book running lead manager (BRLM) of the issue, and MAS Services Ltd is the registrar.
About 60% of the offer is reserved for retail investors, while 30% is put aside for non-institutional investors. At the same time, 10% of the issue is set aside for qualified institutional buyers.
The equity shares are proposed to be listed on BSE and NSE.
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As per the DRHP, the company is engaged in the business of construction of roads including national highways, state highways, district roads, smart roads under Prime Minister's smart city mission projects, smart roads under municipal corporations, bruhat bengaluru mahanagara palike (BBMP) and local area roads in various taluka places etc., in the state of Karnataka.
As of August 31, 2022, the company is working on 25 active projects, with a total order book value of ₹72,030 lakhs. These projects include 7 roads, 7 smart roads, 1 bridge, 7 irrigation projects, and 3 civil construction works.
The past two years have been spent concentrating on building a team of engineers for the designing and engineering elements of roads, bridges, irrigation projects, and industrial areas development in addition to procurement and construction.
In fiscals 2022, 2021 and 2020 the company's total revenues, as restated, were ₹18,638.81 lakhs, ₹21,110.82 lakhs and ₹19,440.50 lakhs respectively. Its profit for the year grew at a compound annual growth rate (CAGR) of 7.63%, between financial years ended 2019-20 to financial year ended 2021-22.
