The initial share sale of Udayashivkumar Infra was subscribed 5.15 times on the third day of subscription on Wednesday, which opens on Monday, March 20, 2023. The price band of the issue was since 33 35 per share. Bids were received for 10,29,54,972 shares against 2 crore shares on offer.
According to market observers, Udayashivkumar Infra shares remain stable at premium (GMP) 10 in the gray market today. The shares of the company are expected to be listed on BSE and National Stock Exchange (NSE) on April 3, 2023. Finalization of the basis of share allocation of the Initial Share Sale is expected next week on Tuesday, March 28. 2023. MAS Services Limited is the Registrar to the Public Issue.
Udayashivkumar Infra IPO consisted of fresh issue of 20,000,000 Equity Shares of face value of Rs. 10 overall 66 crores. The quota for non-institutional investors was subscribed 8.47 times, while the category for retail individual investors (RIIs) was subscribed 4.14 times and qualified institutional buyers (QIBs) 1.21 times. The proceeds of the issue will be used for incremental working capital requirements and for general corporate purposes.
Udayashivkumar is in the business of construction of infra roads. It bids for roads, bridges, canals and industrial sector construction projects in Karnataka, including government departments. The unit is working on twenty five ongoing projects. Udayashivkumar is the promoter of the company.
“Over the past three financial years, the company has registered inconsistent growth in revenue and profit. As of FY22, the company posted 13.41% EBITDA margin and 6.54% PAT margin which looks sluggish in comparison to its peers. The asking P/E comes to around 10x based on FY12 earnings at the upper band of the issue price, said Abhay Doshi, co-founder, Unlisted Arena.
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