The issue includes a fresh issue of up to 66,56,000 Equity Shares of the Company, aggregating to INR 43.26 crores. The company intends to use the funds raised to meet its working capital requirement of the company.
Chavda Infra IPO – Important Details
| Chavda Infra IPO Date | 12Th September-14Th September 2023 |
| Chavda Infra IPO Listing Date | 25st September 2023 |
| Chavda Infra IPO Price | INR 60-65 per share |
| Chavda Infra IPO Lot Size | 2000 Shares |
| Chavda Infra IPO Total Issue Size | INR 43.26 Crores |
| Chavda Infra IPO Basis of Allotment | 20Th September 2023 |
| Chavda Infra IPO Initiation of Refunds | 21Th September 2023 |
| Chavda Infra IPO Credit of Shares to Demat | 22Th September 2023 |
| Chavda Infra IPO Issue Type | Book Built IPO |
| Chavda Infra IPO Listing At | NSE SME |
Chavda Infra Limited IPO – Company Profile
Based out of Ahmedabad, Chavda Infra Limited is part of the Chavda group. The company’s promoter, Mr. Maheshbhai Gunavant Chavda, has experience of over 18 years in the civil construction industry. The promoters started from scratch as contractors for repair works in the civil construction industry
The company specializes in the construction of residential and commercial projects on a contract basis. The company is an integrated civil construction company offering a diversified range of construction and allied services across residential, commercial, and institutional projects in Gujarat, especially in Ahmedabad and Rajkot. It provides services across the construction value chain, ranging from planning and design to construction and post-construction activities to its clients.
Over the years, the company has successfully executed more than 100 projects worth ₹ 67,099.45 Lakhs. As of May 31, 2023, it may have 26 ongoing projects worth approximately ₹ 60,139 lakhs, suggesting a strong order book. Out of 26 ongoing projects, 4 are commercial Projects, 4 are institutional projects, and 18 are residential projects.
Chavda Infra Ltd IPO – Fundamental Analysis
Revenue Growth:
Chavda Infra has demonstrated consistent revenue growth, increasing from ₹9,123.79 lakhs in 2021 to ₹16,188.57 lakhs in 2023, indicating a positive trend in their top-line performance.
Profitability:
The company’s profitability, as measured by profit after tax, has also shown a strong upward trajectory. It grew from ₹443.84 lakhs in 2021 to ₹1,204.62 lakhs in 2023, indicating improved profitability.
Return on Net Worth (RoNW):
RoNW, which measures the company’s efficiency in utilizing its equity, has been impressive. It stood at 33.77% in 2021, dipped slightly to 28.41% in 2022, but then surged to an impressive 39.62% in 2023, indicating efficient use of equity.
Earnings Per Share (EPS):
Diluted EPS, however, has shown some fluctuation, starting at ₹6.69 in 2021, decreasing to ₹2.90 in 2022, and further decreasing to ₹2.47 in 2023.
Net Asset Value (NAV) per Equity Share:
NAV per equity share has been consistently rising from ₹7.30 in 2021 to ₹16.89 in 2023, indicating an increase in the intrinsic value per share.
Asset and Liability Management:
Total assets have grown significantly from ₹8,668.11 lakhs in 2021 to ₹15,424.40 lakhs in 2023, reflecting a substantial increase in the asset base. Liabilities have also increased, indicating a balanced financial structure.
Summary:
Chavda Infra has exhibited strong revenue and profit growth, coupled with impressive RoNW and NAV expansion. However, the fluctuation in diluted EPS in 2022 and 2023 should be considered. Potential investors should conduct further due diligence and assess industry factors before making an investment decision.
Chavda Infra Ltd IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in lakhs) | 9,123.79 | 10,982.24 | 16,188.57 |
| Equity (₹ in lakhs) | 1,314.28 | 1,835.74 | 3,040.36 |
| Expenses (₹ in lakhs) | 8,523.70 | 10,255.13 | 14,525.42 |
| Profit and Loss After Tax (₹ in lakhs) | 443.84 | 521.46 | 1,204.62 |
| RoNW (%) | 33.77% | 28.41% | 39.62% |
| Diluted EPS only (₹) | 6.69 | 2.90 | 2.47 |
| NAV per Equity Share (₹) | 7.30 | 10.20 | 16.89 |
| Total Assets (in lakhs) | 8,668.11 | 10,880.79 | 15,424.40 |
| Total Liabilities (in lakhs)
|
7,353.83 | 9,045.05 | 12,384.04 |
Chavda Infra IPO Peer Comparison
Chavda Infra Limited, with a total income of ₹16,188.57 lakhs and a robust RoNW of 39.62%, demonstrates strong financial performance. In contrast, PSP Projects Limited and Ahluwalia Contracts (India) Limited have higher revenues but lower RoNW percentages, highlighting Chavda Infra’s competitive position in profitability.
| Company | Total Revenue (₹ in lakhs) | Face Value per Equity Share (₹) | P/E | EPS Basic (₹) | RoNW(%) | NAV per Equity Share (Basic) (₹) |
| Chavda Infra limited | 16,188.57 | 10 | NA | 6.69 | 39.62% | 16.89 |
| PSP Projects Limited | 1,92,664.91 | 10 | 18.16 | 36.95 | 16.63% | 222.17 |
| Ahluwalia Contracts (India) Limited | 2,83,839.33 | 2 | 19.90 | 28.98 | 15.79% | 183.59 |
Chavda Infra Ltd IPO Objective
Chavda Infra Limited’s IPO aims to raise capital for working capital needs, allocating INR 27 crores for general corporate purposes, including IT advancements and business expansion.
- Funding working capital requirement: The working capital requirement in the construction industry is relatively higher than in other sectors of the economy due to its capital-intensive nature. The working capital requirement for the FY 2023-24 is expected to be 91.41 crores to achieve the revenue targets for the FY 2023-24. The company proposes to utilize INR 27 crores from the funds raised to meet the working capital requirement.
- General corporate purpose: The company plans to deploy the balance funds towards the general corporate purpose, which is not limited to meeting expenses incurred in the ordinary course of business such as strategic initiatives, including the advancement of information technology, meeting future branches and business expansion, etc.
Chavda Infra Limited IPO Risks And Challenges
Chavda Infra Limited’s IPO faces risks such as heavy geographical and customer dependency, with all revenue from Gujarat and the top 10 customers contributing significantly. Plant and equipment issues also pose threats.
- Geographical Dependency: 100% of the revenues are generated from Gujarat. Any adverse development affecting the operations in this region could hurt the business, financial condition, and results of operations.
- Customer Dependency: As of 31st March 2023, the company derived 73.96% of its revenue from the top 10 customers of the company. The loss of any of these large customers may affect the revenues and profitability.
- Obsolescence, destruction, theft, breakdowns of the major plants or equipment or failures to repair or maintain the same may adversely affect the business, cash flows, financial condition, and results of operations.
Chavda Infra Ltd IPO – Industry & Market Potential
In Budget 2023-24, capital investment outlay for infrastructure is being increased by 33% to Rs.10 lakh crore (US$ 122 billion), which would be 3.3% of GDP.
The Infrastructure Finance Secretariat was established to enhance opportunities for private investment in infrastructure to assist all stakeholders in more private investment. India has to enhance its infrastructure to reach its 2025 economic growth target of US$ 5 trillion.
Chavda Infra Limited IPO – Type of Offer
The issue includes a fresh issue of up to 66,56,000 Equity Shares of the Company, aggregating to INR 43.26 crores in total. The company intends to use the funds raised to meet its working capital requirement of the company.
Chavda Infra IPO Offer Size
The issue includes a fresh issue of up to 66,56,000 Equity Shares of the Company, aggregating to INR 43.26 crores. The price band per share is Rs.60-65 per share.
Chavda Infra Limited IPO Allotment Structure
The IPO allotment structure for Chavda Infra Limited reserves 50% of shares for Qualified Institutional Buyers, 15% for Non-Institutional Investors, and 35% for Retail Individual Investors, with 5.05% reserved for market makers.
- Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
- Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs. 2 lakhs.
- Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.
- Market Maker Reservation: A total of 3,36,000 equity shares are reserved for market makers. This forms 5.05% of the total issue.
How to apply for a Chavda Infra IPO through Alice Blue?
To apply for the Chavda Infra IPO through Alice Blue, you would typically follow these steps:
- Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Chavda Infra IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for Chavda Infra IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Chavda Infra IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Chavda Infra IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Chavda Infra IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Chavda Infra IPO:
- Registrar’s Website: Visit the website of Kfin Technologies Limited, the registrar of the Chavda Infra IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
- NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (BSE) SME (Small Medium Enterprise) Platform. You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Chavda Infra Limited IPO Offer Registrar
The registrar for the Chavda Infra Limited IPO is Kfin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Kfin Technologies Limited
Selenium Tower-B, Plot 31 & 32, Gachibowli
Financial District, Nanakramguda,
Serilingampally Hyderabad – 500 032, Telangana
Tel. Number: +91 40 6716 2222
Email Id: [email protected]
Website: www.kfintech.com
Chavda Infra Limited IPO FAQs
1. What is the allotment date of the Chavda Infra IPO?
The allotment date is 20th September 2023.
2. What is the price band of Chavda Infra IPO?
The issue price per equity share is INR 60-65 per share.
3. What is the size of the Chavda Infra IPO?
The issue includes a fresh issue of up to 66,56,000 Equity Shares of the Company, aggregating to INR 43.26 crores. The price band per share is Rs.60-65 per share.
4. What is the listing date of the Chavda Infra IPO?
The listing date is 25th September 2023.
