Udayshivakumar Infra IPO Review: Udayshivakumar Infra Limited IPO is coming up with its Initial Public Offering. The IPO will open for subscription on March 20th, 2023, and close on March 23rd, 2023. This article will look at Udayshivakumar Infra Limited IPO Review 2023 and analyze its strengths and weaknesses. Keep reading to find out! 

Udayshivakumar Infra IPO Review – About The Company

Formed in 2002 as a sole proprietorship of under the name of ‘M/s Udayshivakumar’ at Davangere, the company is engaged in the business of construction of roads including:

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  • State Highways, District Roads, National Highways, Smart Roads under Municipal Corporations, Smart Roads under PM’s Smart City Mission projects, Bruhat Bengaluru Mahanagara Palike (BBMP), and Local Area Roads in various Taluka Places, etc., in the State of Karnataka, 
  • Constructions of Bridges across Minor and Major Rivers, Railway Over Bridges (ROB), construction of Minor and Major Irrigation and canal projects, and Industrial Areas, based in the State of Karnataka.

It has completed 30 projects totaling 684 crores in contract value. This includes 16 highways, 5 bridges, 6 irrigation projects, and 3 civil construction projects. 

As of Dec 2022, the company is executing 30 ongoing projects which include 10 roads, 1 bridge,  7 smart roads, 8 irrigation projects, 3 civil construction works, and 1 toll plaza.

Financial Highlights

If we look at the financials of Udayshivakumar Infra Limited we find out that their assets have grown from Rs.158.26 crore in March 2020 to Rs. 178.90 crore in March 2022. 

Their revenues on the other hand have decreased from Rs.194.41 crores in March 2020 to Rs. 186.39 crores in March 2022. The revenues for the FY22-23 stand at 107.14 crores as of September 2022.

Their profits have grown from Rs. 10.49 crores in March 2020 to Rs. 12.15 crores in March 2022. As of September 2022, the company’s profits stand at Rs. 10.02 crores for FY22-23.

Udayshivakumar Infra IPO Review - Financials

(Source: RHP of the company)

Competitors of the Company

Competitors chart

(Source: RHP of the company)

Strengths of the Company

  • The company has concentrated its business activities on the construction of roads, bridges, and irrigation projects which has enabled the Company to bid for various projects in these areas.
  • The company has a strong order book for the above-mentioned infrastructures from the Karnataka state government. The company has been able to develop a long-standing relationship with clients like PWD, NH, (Morth), BBMP, KBJNL, VJNL, KIADB, DHUDA, KPWP & IWTD, and various local bodies.
  • The company has an in-house design and engineering team, and a fleet of modern construction machinery and equipment that enables them to complete projects with high quality and skilled manpower that enables them to complete their projects on time.
  • The Company comprises an experienced management team and a promoter with over 25 years of experience which helps them deliver high levels of client satisfaction.

Weaknesses of the Company

  • The company infrastructure business is mostly focused on Karnataka. They are dependent on projects in the state of Karnataka. Any adverse changes in the central or state government policies may have a huge impact on the company’s projects and revenues.
  • A significant amount of revenue of the company is mostly derived from a limited number of clients and the loss of such can have a significant impact on its revenues.
  • The company obtains most of its revenue from civil construction and a failure to obtain such a contract will hugely impact the business.
  • The company has been subject to search and seizure from the Income Tax authorities in the past. Any such occurrences in the future can greatly impact the operations of the business. 

Udayshivakumar Infra IPO Review – GMP

The shares of Udayshivakumar Infra Limited traded at a premium of 28.57% in the grey market on March 16th, 2023. The shares tarded at Rs 45. This gives it a premium of Rs 10 per share over the cap price of Rs 35.

Key IPO Information

IPO Size₹66.00 Cr
Fresh Issue₹66.00 Cr
Offer for Sale (OFS)
Opening dateMarch 20, 2023
Closing dateMarch 23, 2023
Face Value₹10 per share
Price Band₹33 to ₹35 per share
Lot Size428 Shares
Minimum Lot Size1(428)
Maximum Lot Size13(5564)
Listing DateApril 3, 2023

Promoters: Shri Udayshivakumar

Book Running Lead Manager: Saffron Capital Advisors Private Limited

Registrar to the Offer: MAS Services Limited

The Objective of the Issue

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

  • For financing the company’s incremental working capital requirements.
  • General corporate purposes.

In Closing

In this article, we looked at the details of Udayshivakumar Infra IPO Review 2023. Analysts remain divided on the IPO and its potential gains. This is a good opportunity for investors to look into the company and analyze its strengths and weaknesses. That’s it for this post.

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

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