Udayshivakumar Infra, the first public offer of the current financial year (FY24), made a weak debut on the domestic stock exchanges on Monday. The share price of the Karnataka-based road construction company listed at ₹30 on the National Stock Exchange (NSE), a discount of 14.3% against the issue price of ₹35. On the Bombay Stock Exchange (BSE), the stock was listed flat at ₹35 apiece, in sync with muted trading in the broader market.
Post listing, Udayshivakumar Infra shares declined as much as 20% to hit a low of ₹29.15 on the NSE. On the BSE, the stock touched a high and low of ₹35 and ₹33.25. On the volume front, a total of 34.2 lakh shares changed hands over the counter on the BSE and the NSE in the first hour of trade so far. The market capitalisation stood at ₹184 crore at the time of reporting.
Udayshivakumar Infra had a disappointing opening at the bourses even after receiving good response from investors for its ₹66 crore initial public offering (IPO), which was subscribed 30 times on the back of strong bid by non-institutional investors. The shares were commanding a premium of ₹7-8 in the grey market ahead of the listing.
The issue, which opened between March 20-23, received bids for over 61.26 crore shares against 2 crore shares on offer, as per the data available with the NSE. The price band for the IPO was ₹33-35 per share, while the lot size was 428 shares.
The quota reserved for non-institutional investors were booked 60.42 times, while the portion for qualified institutional buyers (QIBs) and retail investors were subscribed 40.47 times and 14.10 times, respectively.
The issue was completely a fresh issue of equity shares and the company intends to use IPO proceeds for funding incremental working capital requirements and general corporate purposes.
Udayshivakumar Infra is engaged in the business of construction of roads, including national highways, state highways, district roads, smart roads under PM’s Smart City Mission projects, Smart Roads under Municipal Corporations, Bruhat Bengaluru Mahanagara Palike (BBMP), and local area roads in various taluka places in the state of Karnataka. As of now, the company has completed 30 projects having total contract value of ₹68,468 lakhs, which includes sixteen roads, five bridges, six irrigation, and three civil construction works. As on December 31, 2022, it has an order book of ₹1,290 crore.
On the financial front, the company has reported inconsistent growth in its top and bottom lines in the last three fiscals. It posted net profit of ₹12.14 crore in FY22, ₹9.32 crore in FY21, and ₹10.49 crore in FY20. It registered revenue of ₹186.39 crore in FY22, ₹211.11 crore in FY21, and ₹194.41 crore in FY20. For the first half of FY23, it posted a net profit of ₹10.02 crore and a revenue of ₹107.14 crore.
