Gujarat, India-based civil construction company Chavda Infra Ltd. has set a price band of Rs 60-65 ($1 = Rs 83.1) per share for its upcoming initial public offering (IPO), according to sources on Thursday. The firm aims to raise over Rs 43 (Rs 1 crore = $120,250) crore from the IPO, which consists solely of a fresh issue of 66.56 lakh equity shares.
The IPO is set to open for subscription on Monday, September 12, and will close on Wednesday, September 14. The anchor position is expected to open on Sunday, September 11, and the shares are anticipated to be listed on NSE Emerge by the last week of September.
The entire proceeds from the issue will be utilised by Chavda Infra for working capital requirements amounting to Rs 27 crore. The remaining funds will be used for general corporate purposes and issue expenses.
Chavda Infra has a substantial portfolio with over 100 projects worth Rs 67,099.45 lakh executed so far. As of May 31, 2023, the company had 26 ongoing projects worth about Rs 60,139 lakh. These include four commercial projects, four institutional projects, and 18 residential projects.
The company's financial performance has shown positive growth. In FY2022-23, Chavda Infra's revenue from operations stood at Rs 16,188.57 lakh, up from Rs 10,982.24 lakh in FY2021-22. Its EBITDA also increased from Rs. 1,563.77 lakh in FY2021-22 to Rs. 2,706.43 lakh in FY2022-23. The company's profit after tax (PAT) more than doubled from Rs. 521.46 lakh in FY2021-22 to Rs. 1,204.62 lakh in FY2022-23.
Construction vertical accounted for a significant portion of Chavda Infra's total revenues in FY2022-23, making up approximately 99% of the total revenues for the company during this period.
Chavda Infra Ltd., an ISO 9001:2015 certified company, provides construction and allied services across residential and commercial projects in Gujarat.
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