Suntech Infra Solutions IPO

About Suntech Infra Solutions IPO

Suntech Infra Solutions Limited IPO is an IPO of up to 51,61,600 equity shares of face value of ₹10 each, aggregating to ₹44.39 crores. It consists of an offer for sale of up to 11,87,200 equity shares, aggregating to ₹10.21 cr and a fresh issue of up to 37,15,200 equity shares of face value of ₹10 each, aggregating to ₹31.95 cr. The price range of the shares is between ₹81 and ₹86 and lot size is 1600 shares.

The shares will be allotted on June 30, 2025. The credit of shares to the demat account will take place on July 1, 2025, and the initiation of refunds will take place on July 1, 2025.

Objective of Suntech Infra Solutions IPO

• Funding the working capital requirements of the company.
• Funding of capital expenditure requirements of the company towards the purchase of construction equipment for the civil construction business.
• General corporate purposes.

Industry Outlook

The construction industry in India is expected to reach US$1,40,000 crore by 2025. By 2030, cities are expected to generate 70% of India’s GDP (MGI, 2011). The construction industry market in India works across 250 sub-sectors with linkages across sectors. An estimated 60 crore people are likely to be living in urban centres by 2030, creating a demand for 2.5 crore additional mid-end and affordable units. Under NIP, India has an investment budget of $1,40,000 crore on infrastructure – 24% on renewable energy, 18% on roads & highways, 17% on urban infrastructure, and 12% on railways. Schemes such as the revolutionary Smart City Mission (target 100 cities) are expected to improve quality of life through modernised/technology-driven urban planning. Fifty-four global innovative construction technologies were identified under a Technology Sub-Mission of PMAY-U to start a new era in Indian construction technology sector.

Infrastructure is the backbone of any country. Its development implies growth in all sectors of the economy, not to mention real estate, an indirect beneficiary of every headwind in infrastructure sector. The PM Awas Yojana and the extended credit-linked subsidy scheme address the affordability concern by providing an increment in the PM Awas Yojana by 66% to ₹79,000 crore and extension of CLSS till 2027. FDI in construction development (townships, housing, built-up infrastructure and construction development projects) and construction (infrastructure) activity sectors stood at US$2,661 crore and US$3,391 crore, respectively, between April 2000 and March 2024.

Company Information

Suntech Infra Solutions Limited is a business-to-business (B2B) construction company. They are engaged in the business of civil construction services such as civil foundation works, civil structural works; on direct contracting and sub-contracting basis, and renting of construction equipment. They have served both public and private sector clients, delivering solutions across industries such as power, oil & gas, steel, cement, renewable energy, refineries, petrochemical plants, fertiliser plants, and process plants. Additionally, they contribute to urban and rural infrastructure projects, including bridges, metros, and irrigation systems. Their expertise spans a wide range of infrastructure projects, including - piling and foundation work, earthworks, bridges and flyovers, industrial and commercial structures. They also provide construction equipment rentals on a hire basis. The company is now venturing into irrigation and port construction. They secure contracts generally through one-to-one negotiation and tenders. Geographically, their company generates revenue in India from states like Delhi, Bihar, Gujarat, Orissa, Rajasthan etc. Further, they generate revenue majorly from civil foundation work.

Risks of Suntech Infra Solutions IPO

• Majority of their sales is generated from their civil foundation work.

A significant portion of their revenue is generated from their civil foundation for the nine-month period ended 31 December 2024 and for FY 2024, FY 2023, and FY 2022.This high dependence on their civil foundation segment means that any decrease in demand for these services, pricing pressures, or shifts in market conditions could substantially impact their operational results.

• Complying with approvals and licenses is needed to operate the business

Certain approvals and licenses are needed in the ordinary course of business and they are required to comply with certain rules and regulations to operate our business, any failure to obtain, retain and renew such approvals and licences or comply with such rules and regulations may adversely affect our operations.

• For supply of construction materials, they rely on suppliers. Inadequate or interrupted supply or sub-standard quality of construction materials could affect their reputation, business, and results of operations.

Their top ten suppliers contributed 43.67%, 65%, 60% and 18% of their total purchases for the nine-month period ended 31 December 2024 and for the financial year/period ended 31 March 2024, 2023, and 2022, respectively, based on restated financial statements. They cannot assure that they will be able to get the same quantum and quality of supplies, or any supplies at all, and the loss of supplies from one or more of them may adversely affect their purchases of stock and ultimately their revenue and results of operations.

Anchor Investor Information: 24 June 2025

IPO Registrar and Book Running Lead Managers Book running lead managers: GYR Capital Advisors Private Limited

Registrar for the IPO is MAS Services Limited

Business Model

The company earns its revenue through offering civil construction services such as civil foundation works and civil structural works; on direct contracting and sub-contracting basis and renting of construction equipment.

Company Growth Trajectory

The revenue from operations of the company for fiscal year 2024 was ₹95.59 crore against ₹85.68 crore for fiscal year 2023, an increase of 11.58% in revenue from operations. This increase was due to growth in hiring business, new projects acquired and improved margins. The other income of the company for fiscal year 2024 was ₹0.66 crore against ₹0.52 crore for fiscal year 2023, an increase of 27.41% in other income. This increase was due to profit on sale of fixed assets. Profit after tax for fiscal 2024 was ₹9.25 crore against profit after tax of ₹5.76 crore in fiscal 2023, an increase of 60.62%.

Company Market Position

Their execution capabilities have grown significantly with time, both in terms of the size of projects and the number of projects that they execute simultaneously. As of 31 May 2025, they have 8 ongoing projects worth approximately ₹317.11 crore confirmed based on Letters of Allocation/Purchase Orders and an order book for construction equipment renting worth approximately ₹4.77 crore.

How To Check Allotment Status of Suntech Infra Solutions IPO?

You can check the allotment status of shares either on the website of the National Stock Exchange (NSE) or on the website of the registrar MAS Services Limited.

To check the status on the NSE website:

• Visit the NSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Suntech Infra Solutions Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the MAS Services Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Suntech Infra Solutions Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status

How To Apply for Suntech Infra Solutions IPO?

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.