Udayshivakumar Infra IPO: GMP, subscription status on day 2 of the public issue
1 min read . Updated: 21 Mar 2023, 08:02 AM IST
PremiumUdayshivakumar Infra IPO has been overall subscribed 0.58 times on the first day of the offer
The three-day long initial public offer (IPO) of Udayshivakumar Infra Ltd has been total subscribed 0.58 times on the first day of the offer that opened on Monday, March 20, 2023. The issue, which has a price band of ₹33 to ₹35 per share, will close on Wednesday, March 22, 2023.
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.
Udayshivakumar Infra IPO consists of fresh issue of 20,000,000 equity shares of the face value of ₹10 aggregating to ₹66 crore. The minimum order quantity is 428 Shares. Proceeds of the issue will be used to fund incremental working capital requirements and general corporate purposes.
About 60% of the initial share sale is reserved for retail investors, 30% for non-institutional investors (NIIs) and 10% of the issue has been reserved for qualified institutional buyers (QIBs).
“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. Small issue and significant order book may generate some fancy," said Abhay Doshi, co-founder of UnlistedArena.
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.