Udayshivakumar Infra IPO opened for subscription on 20 March and the issue has been booked 58% on day 1, with total bids of 1,15,51,292 shares. Qualified institutional buyers (QIBs) subscribed for 0.97 times of their reserved portion. Retail investors bid for 0.44 times of the shares reserved for RIIs. The NII portion garnered 73% bids so far. The IPO closes for subscription on Thursday, 23 March.
Udayshivakumar Infra’s Rs 66 crore IPO opened for subscription on Monday and the price band for the IPO has been fixed at Rs 33-35 a share. Udayshivakumar IPO comprises a fresh issue of two crore equity shares. Ahead of the IPO, the issue was opened for anchor investors on 17 March, Friday. Udayshivakumar shares were commanding a grey market premium (GMP) of Rs 10 today. The shares of the company are expected to list on the stock exchanges on Monday, 3 April 2023.
10% of the IPO is reserved for QIBs, while NIIs can bid for 30% and retail investors for the remaining 60%. Retail investors can apply for a minimum 428 shares in one lot, and a maximum of 13 lots with 5564 shares, totalling to Rs 194,740. The fresh funds raised will be utilized to fund the incremental working capital requirements and for general corporate purposes, Udayshivakumar Infra said in its filing.
Udayshivakumar Infra is engaged in the business of construction of various road projects, such as national and state highways, various types of roads, such as district and smart roads, and various other road-building projects in Karnataka. The company has an in-house engineering team that deals with the building of roads, bridges, flyovers and irrigation projects.
“Over the last 3 years, the company has reported a mix set of financial results. The company is operating in a limited geographic location where it is dependent on a limited number of clients, especially government projects, which could be a risk. The IPO is coming at a P/E valuation of 10.51, which is fairly priced. So, finally, our view on the overall sector is bullish, but as this particular offer is very small in size, we will recommend only high-risk investors to subscribe this IPO,” said Swastika Investmart