Integrity Infrabuild Developers IPO

About Integrity Infrabuild Developers Ltd IPO

The IPO of Integrity Infrabuild Developers Ltd comprises a fresh issue of 12,00,000 equity shares of face value of ₹10 each. There is no offer for sale in this IPO, which is a fixed price issue.

Objectives of Integrity Infrabuild Developers Ltd IPO

• Capital expenditure toward purchase of machinery and equipment
• Funding working capital requirements
• General corporate purpose

Industry Outlook

Infrastructure is a key enabler in helping India become a US$ 26 trillion economy. Investments in building and upgrading physical infrastructure, especially in synergy with the ease of doing business initiatives, remain pivotal to increase efficiency and costs.

India's infrastructure sector is set for robust growth, with planned investments of US$ 1.4 trillion by 2025. The government's National Infrastructure Pipeline (NIP) program aims to channel significant capital into key areas such as energy, roads, railways, and urban development. With a 37% increase in the current fiscal year, capital expenditures (CAPEX) are on the rise, which bolsters ongoing infrastructure development and fits with 2027 goals for India's economic growth to become a US$ 5 trillion economy.

Company Information

Integrity Infrabuild Developers Ltd specialises in contracting and sub-contracting services for various government projects, including road construction, building, and bridge construction.

Since January 4, 2017, the company along with the erstwhile partnership firm, M/s. Integrity Infrabuild (Formerly also known as M/s. Deepak J Gandhi), have executed various projects in the State of Gujarat. From FY 2021-22, they have completed 111 projects having an aggregate contract value of ₹213.3663 crores, which includes 103 roads and 8 buildings.

Risks of Integrity Infrabuild Developers Ltd

• Geographical Concentration

The entire business of Integrity Infrabuild Developers Ltd is concentrated in the state of Gujarat. It’s primarily dependent on the projects undertaken or awarded in the state of Gujarat by the Gujarat State Government, the local authorities in the state of Gujarat and other entities funded by the Gujarat State Government. Therefore, it derives its entire revenues from contracts with government entities and is exposed to risks emanating from economic, regulatory and other changes in the state of Gujarat.

• Dependence on Few Clients

Substantial portion of its revenues has been dependent upon a few clients. The loss of any one or more of its major clients would have a material adverse effect on its business operations and profitability. The company cannot assure that it can maintain the historical levels of business from these clients or that it will be able to replace these clients in case it loses any of them.

• Implementation Risks

Projects included in its on-going and its future projects are exposed to various implementation risks and uncertainties and may be delayed, modified or cancelled for reasons beyond their control which may materially and adversely affect its business, prospects, reputation, profitability, financial condition and results of operation.

Anchor Investor Bidding Date NA

IPO Registrar and Book Running Lead Manager

• IPO Registrar: MUFG Intime India Pvt Ltd
• Book Running Lead Manager: Aryaman Financial Services Ltd

Business Model

An integrated civil contract company, Integrity Infrabuild Developers Ltd is into contracting and sub-contracting services. Its civil contract operations are broadly categorised into roads, bridges and building construction.

Company Growth Trajectory

Integrity Infrabuild Developers Ltd along with its track record as partnership firm is more than 7 years old and it has been profitable since inception. In the last three years, it has been able to achieve strong financial performance. Its revenue from operations has increased from ₹33.4223 crores in fiscal 2022 to ₹64.4702 crores in Fiscal 2024 representing a CAGR of 38.89%.

The company’s EBITDA has increased from ₹1.6087 crores in Fiscal 2022 to ₹3.5710 crores in Fiscal 2024 representing a CAGR of 48.99%. Its profit after tax (PAT) has increased from ₹0.2996 crores in Fiscal 2022 to ₹0.9485 crores in Fiscal 2024 representing a CAGR of 77.94%.

Market Position

From FY 2021-22, the company has completed 111 projects having an aggregate contract value of ₹ 213.3663 crores, which includes 103 roads and 8 buildings. Out of these 111 completed projects, 100% were under direct contract with the Gujarat Government & Semi Government authorities and none of them were under sub-contract with the main contractor.

How to Check Allotment Status of Integrity Infrabuild Developers Ltd?

1. Visit the Registrar’s Website

• Visit the official website of MUFG Intime India Pvt Ltd
• Click on ‘Rights Issues’ under ‘Investor Services’
• Click on ‘Check Allotment Status’
• Choose Company Name and enter either your Demat account no, CAF or Folio No
• Click on Submit to know the status

2. Check on the National Stock Exchange Website

The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Integrity Infrabuild Developers Ltd IPO. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:

• Company name from dropdown
• Application number
• PAN

Then click 'Submit' to know the allotment status.

How to Apply for Integrity Infrabuild Developers Ltd IPO?

• Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.