Udayshivakumar Infra IPO: Latest GMP as all eyes on shares listing after allotment

As per market observers, UdayShivakumar Infra shares are commanding a premium (GMP) of ₹9 in the grey market today, lower from around ₹14 in the previous sessions.

Udayshivakumar Infra Ltd’s initial public offering (IPO) was subscribed 5.15 times on the third day of subscription on Wednesday, Mar 23 that opened on Monday, March 20, 2023. The offer received bids for 10,29,54,972 shares against 2 crore shares on offer, as per the exchange data. The IPO offered fresh equity shares of up to ₹66 crore and was priced in a range of ₹33-35 a share.

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.

Udayshivakumar Infra IPO consisted of fresh issue of 20,000,000 equity shares of the face value of ₹10 aggregating to ₹66 crore. Proceeds of the issue will be used to fund incremental working capital requirements and general corporate purposes.

“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.