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Home News Udayshivakumar Infra IPO Review: Analyzing Its Strengths, Financials, and Investment Prospects

Udayshivakumar Infra IPO Review: Analyzing Its Strengths, Financials, and Investment Prospects

Udayshivakumar Infra IPO Review

Udayashivkumar The initial public offering of Infra Limited is approaching. The IPO’s subscription period will begin on March 20 and end on March 23, 2023. This article will examine and assess the pros and drawbacks of Udayashivkumar Infra Ltd IPO Review 2023. Find out by reading on!

Introduction

The Udayshivakumar Infra IPO is an upcoming initial public offering that is expected to hit the market soon. The company is planning to raise funds through this IPO, which will be used for various purposes, including debt repayment, expansion of the business, and working capital requirements. In this article, we will analyze the Udayshivakumar Infra IPO and provide a comprehensive review of the company’s financials, business operations, and investment prospects.

Business Operations

Udayshivakumar Infra operates in the infrastructure construction industry, which is a highly competitive and capital-intensive industry. The company specializes in the construction of highways, bridges, and other infrastructure projects. The company’s operations are spread across several states in India, and it has a team of experienced professionals who manage the day-to-day operations of the business.

Industry Overview

The infrastructure construction industry in India is expected to grow at a CAGR of 7% over the next five years. The growth is driven by several factors, including increased government spending on infrastructure projects, rising urbanization, and the need to upgrade the country’s infrastructure to meet global standards.

Udayashivkumar Infra IPO Review – About the company

The company, which was founded in Davangere in 2002 as a sole proprietorship under the name “M/s Udayashivkumar,” is involved in the construction of roadways.

State Highways, District Roads, National Highways in the State of Karnataka, Municipal Corporation Smart Roads, Prime Minister’s Smart City Mission Projects Smart Roads, Bruhat Bengaluru Mahanagara Palike (BBMP), Local Area Roads in various Taluka locations, etc.
In the State of Karnataka, work is being done on industrial zones, canal projects, minor and big irrigation projects, and railway over bridges (ROBs).

30 projects totaling 684 crores in contract value have been completed. These contains 3 civil works projects, 6 irrigation projects, 5 bridge projects, and 16 highway projects.

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In the State of Karnataka, work is being done on industrial zones, canal projects, minor and big irrigation projects, and railway over bridges (ROBs).

30 projects totaling 684 crores in contract value have been completed. These contains 3 civil works projects, 6 irrigation projects, 5 bridge projects, and 16 highway projects.

The company will have completed 30 active projects by the end of 2022, including 10 highways, 1 bridge, 7 smart roads, 8 irrigation projects, 3 civil works, and 1 toll plaza.

Financial Highlights

If we look at the financial position of Udayashivkumar Infra Limited then we come to know that their assets have increased from Rs.158.26 Crores in March 2020 to Rs. 178.90 crores in March 2022.

On the other hand, their revenue decreased from Rs 194.41 crore in March 2020 to Rs. 186.39 crores in March 2022. The revenue for FY22-23 till September 2022 was 107.14 crores.

His profits have increased from Rs. 10.49 crores in March 2020. 12.15 crores in March 2022. By September 2022, the company’s profits are expected to be Rs. 10.02 crore for FY22-23.

Udayashivkumar Infra IPO Review - Financials

(Source: RHP of the company)

company’s competitors

competitor chart

(Source: RHP of the company)

Strengths and Weaknesses

Udayshivakumar Infra’s strengths include its experienced management team, strong reputation in the industry, and consistent financial performance. However, the company’s weaknesses include its dependence on a few key clients, limited geographical presence, and exposure to project execution risks.

IPO Details

The Udayshivakumar Infra IPO is expected to raise funds through a mix of fresh issue of shares and an offer for sale by existing shareholders. The company has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) and is awaiting regulatory approvals. The IPO size and issue price have not been disclosed yet.

Allocation of Funds

The proceeds from the Udayshivakumar Infra IPO will be used for various purposes, including debt repayment, expansion of the business, and working capital requirements. The company plans to use INR 100 crores for debt repayment, INR 150 crores for expansion of the business, and INR 50 crores for working capital requirements.

Valuation Analysis

The valuation of Udayshivakumar Infra will depend on several factors, including its financial performance, growth prospects, and industry trends. As per the DRHP, the company’s revenue and net profit have grown at a CAGR of 24% and 35%, respectively, over the past three years. Based on this growth rate and the company’s future prospects, the valuation is expected to be reasonable.

Investment Recommendation

Udayshivakumar Infra is a well-established player in the infrastructure construction industry, with a strong reputation for delivering projects on time and within budget. The company’s financials have been consistent over the years, and it has several growth prospects in the coming years. However, investors should also consider the risks involved, including intense competition, project execution risks, and delays in project approvals and clearances. Overall, the Udayshivakumar Infra IPO can be a good investment opportunity for investors with a long-term investment horizon.

Risks Involved

Investing in the Udayshivakumar Infra IPO comes with several risks, including the risk of a slowdown in the infrastructure construction industry, intense competition, project execution risks, and delays in project approvals and clearances. Investors should carefully consider these risks before investing in the IPO.

Key IPO Information

Description Description
IPO size ₹66.00 crore
latest issue ₹66.00 crore
Offer for Sale (OFS) ,
opening date March 20, 2023
Last date March 23, 2023
Face value ₹10 per share
price band ₹33 to ₹35 per share
big size 428 shares
Minimum Lot Size 1(428)
maximum lot size 13(5564)
listing date April 3, 2023

Promoter: Mr. Udayashivkumar

Book Running Lead Manager: Kesar Capital Advisors Private Limited

Registrar of Offers: MAS Services Limited

purpose of the issue

The net proceeds from the issue will be used for the following purposes:

  • To finance the incremental working capital requirements of the company.
  • General Corporate Objectives.

Conclusion

The Udayshivakumar Infra IPO is an upcoming IPO in the infrastructure construction industry. The company has a strong reputation in the industry and has recorded consistent financial performance over the years. The IPO proceeds will be used for various purposes, including debt repayment, expansion of the business, and working capital requirements. While the company has several growth prospects, investors should also consider the risks involved before investing in the IPO.

Are you applying for IPO? Let us know in the comments below.

 


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