Udayshivakumar Infra IPO: GMP, share allotment, listing date details

The initial share sale of Udayshivakumar Infra was subscribed 5.15 times on the third day of subscription on Wednesday that opened on on Monday, March 20, 2023. The issue had a price band of ₹33 to ₹35 per share. The offer received bids for 10,29,54,972 shares against 2 crore shares on offer.

As per market observers, UdayShivakumar Infra shares' premium (GMP) have remained steady at ₹10 in the grey market today. Shares of the company are expected to be listed on the BSE and National Stock Exchange (NSE) on April 3, 2023. The finalisation of the basis of share allotment of the initial share sale is expected to take place next week on Tuesday March 28, 2023. MAS Services Limited is the registrar of the public issue.

Udayshivakumar Infra IPO consisted of fresh issue of 20,000,000 equity shares of the face value of ₹10 aggregating to ₹66 crore. The quota for non-institutional investors was subscribed 8.47 times, while the category for Retail Individual Investors (RIIs) received 4.14 times subscription and Qualified Institutional Buyers (QIBs) 1.21 times. Proceeds of the issue will be used to fund incremental working capital requirements and general corporate purposes.

Udayshivakumar Infra is in the business of construction of roads. It bids for roads, bridges, canals, and industrial area construction projects in Karnataka, including government departments. The entity is working on twenty-five ongoing projects. Udayshivakumar is the Promoter of the company.

“Over the last three fiscals, the company has posted inconsistent growth in revenues and profit. As on FY22, the company had posted 13.41% EBITDA margins and 6.54% PAT margins which too looks dull compared to its peers. At the upper band of issue price the asking p/e comes around 10x based on FY22 earnings which seems moderate," said Abhay Doshi, co-founder of UnlistedArena.