About the Company
Chavda Infra is a construction company that provides civil engineering, electrical, and mechanical contracting services. The company was founded in 1995 by Mr. Chavda, who has over 30 years of experience in the construction industry.
Chavda Infra has a strong track record of execution and has completed several projects in the infrastructure sector, including roads, bridges, buildings, and power plants. The company has a team of experienced professionals who are committed to providing quality services to its clients.
The company is headquartered in Ahmedabad, Gujarat, and has a presence in other parts of India. Chavda Infra is a professionally managed company with a strong financial position. The company is well-placed to grow its business in the coming years.
Company Website: https://www.chavdainfra.com/
The services offered by the company:
Here are some of the products and services offered by Chavda Infra:
- Civil engineering: Chavda Infra provides civil engineering services, such as road construction, bridge construction, building construction, and power plant construction.
- Electrical contracting: Chavda Infra provides electrical contracting services, such as electrical installation, electrical maintenance, and electrical repair.
- Mechanical contracting: Chavda Infra provides mechanical contracting services, such as plumbing, HVAC, and fire protection.
- Turnkey projects: Chavda Infra also offers turnkey projects, which means that the company will handle all aspects of the project, from design to construction to commissioning.
The objective of Chavda Infra SME IPO:
The Company aims to utilize the Net Proceeds of the Fresh Issue to fulfill the following objectives:
- To repay debt: The company plans to use a portion of the IPO proceeds to repay debt, which will improve its financial position and reduce its interest expenses.
- To fund working capital requirements: The company also plans to use a portion of the IPO proceeds to fund its working capital requirements, which will help it to meet its day-to-day expenses and ensure smooth operations.
- To invest in new projects: The company may also use a portion of the IPO proceeds to invest in new projects, which will help it to grow its business and expand its operations.
The IPO of Chavda Infra is being offered at a price band of Rs. 60-65 per share. The issue opens on September 12, 2023 and closes on September 14, 2023. The company is targeting to raise Rs. 43.26 crores through the IPO.
useful information
Chavda Infra IPO Lot Size
| IPO Activity | Date |
|---|---|
| Issue Price | 60-65 |
| Market Lot: | 2000 Shares |
| 1 Lot Amount: | 1,30,000 |
| Min Small HNI Lots(2-10 Lakh): | 4000 shares |
| Min Big HNI Lots(10+ Lakh): | 16000 shares |
Chavda Infra IPO Dates
| IPO Activity | Date |
|---|---|
| IPO Open Date | 12-09-2023 |
| IPO Close Date | 14-09-2023 |
| Basis of Allotment Finalization Date* | 20-09-2023 |
| Refunds Initiation* | 21-09-2023 |
| Credit of Shares to Demat Account* | 22-09-2023 |
| IPO Listing Date* | 25-09-2023 |
Chavda Infra IPO Details
| IPO Issue Price: | 60-65 Per Share |
| DRHP: | Download DRHP |
| RHP: | Download RHP |
| IPO Listing At: | NSE SME |
| Retail Quota: | Not less than 35% of the Net Issue |
| IPO Issue Type: | Fresh Issue |
| IPO Issue Size: | ₹43.26 Cr |
| Fresh Issue: | ₹43.26 Cr |
| Face Value: | ₹10 Per Equity Share |
| Promoter Holding Pre IPO: | 100 % |
| Promoter Holding Post IPO: | 73 % |
Chavda Infra SME IPO GMP Trend
| GMP Date | GMP | Estimated Listing Price | Last Updated Time |
|---|---|---|---|
| 06-09-2023 | 30 | 95 (46.15%) | 06-Sep-2023 9:00 PM |
| 07-09-2023 | 30 | 95 (46.15%) | 07-Sep-2023 9:00 PM |
| 08-09-2023 | 40 | 105 (61.54%) | 08-Sep-2023 9:00 PM |
| 09-09-2023 | 45 | 105 (61.54%) | 09-Sep-2023 10:00 PM |
| 10-09-2023 | 50 | 115 (76.92%) | 10-Sep-2023 10:00 PM |
| 11-09-2023 | 50 | 115 (76.92%) | 11-Sep-2023 10:00 PM |
| 12-09-2023 | 50 | 115 (76.92%) | 12-Sep-2023 10:00 PM |
| 13-09-2023 | 58 | 123 (89.23%) | 13-Sep-2023 11:00 PM |
| 14-09-2023 | 60 | 125 (92.31%) | 14-Sep-2023 11:00 PM |
| 15-09-2023 | 62 | 127 (95.38 %) | 15-Sep-2023 11:00 PM |
| 16-09-2023 | 60 | 125 (92.31 %) | 16-Sep-2023 11:00 PM |
| 17-09-2023 | 60 | 125 (92.31 %) | 17-Sep-2023 11:00 PM |
| 18-09-2023 | 60 | 125 (92.31 %) | 18-Sep-2023 11:00 PM |
| 19-09-2023 | 60 | 125 (92.31 %) | 19-Sep-2023 11:00 PM |
| 20-09-2023 | 60 | 125 (92.31 %) | 20-Sep-2023 11:00 PM |
| 21-09-2023 | 60 | 125 (92.31 %) | 21-Sep-2023 11:00 PM |
Key risks
The key risks in the Chavda Infra IPO are as follows:
- Industry risk: The construction industry is cyclical and is susceptible to economic downturns. If the economy weakens, the demand for construction services may decline, which could impact the company’s revenue and profitability.
- Competition risk: The construction industry is highly competitive and the company faces competition from other established players. The company needs to maintain its competitive edge in order to sustain its growth.
- Execution risk: The company faces execution risks, such as delays in project completion and cost overruns. These risks could impact the company’s financial performance.
- Debt risk: The company has a high debt burden, which could increase its financial risk. The company needs to manage its debt carefully in order to avoid defaulting on its loans.
- Regulatory risk: The company is subject to various government regulations, which could change from time to time. These changes could impact the company’s operations and financial performance.
Chavda Infra SME IPO Subscription (NSE + BSE)
| Day | Date | QIB | NII | RII | Total |
|---|---|---|---|---|---|
| 1 | 12thSep 2023 | 3.50x | 4.31x | 9.19x | 6.52x |
| 2 | 13th Sep 2023 | 13.86x | 10.22x | 30.69x | 21.50x |
| 3 | 14th Sep 2023 | 95.10x | 241.96x | 202.07x | 180.06x |
Risk
Chavda Infra Past Financials
Income Statement (in Rs. Crores)
| Key Financial Points | 2020-21 | 2021-22 | 2022-23 (Mar ’23)* |
| Revenue | 91.3 | 109.9 | 162 |
| Cost of Revenue | 75.5 | 84 | 122.4 |
| Gross Profit | 15.8 | 25.9 | 39.6 |
| Operating Profit | 5.44 | 9.35 | 12 |
| Profit After Tax | 2.98 | 6.38 | 8.4 |
Balance Sheet (in Rs. Lakhs)
| Particulars | As of March 31, 2023 | As of March 31, 2022 | As of March 31, 2021 |
|---|---|---|---|
| Equity and Liabilities | |||
| Shareholders’ Funds | |||
| Share Capital | ₹1,800.00 | ₹150.00 | ₹150.00 |
| Reserves and Surplus | ₹1,240.36 | ₹1,685.74 | ₹1,164.28 |
| Total Equity | ₹3,040.36 | ₹1,835.74 | ₹1,314.28 |
| Non-Current Liabilities | |||
| Long-Term Borrowings | ₹2,676.34 | ₹2,336.38 | ₹1,712.62 |
| Other Long-Term Liabilities | ₹78.86 | ₹78.86 | ₹65.00 |
| Long-Term Provisions | ₹49.65 | ₹39.77 | ₹33.70 |
| Total Non-Current Liabilities | ₹2,804.85 | ₹2,455.01 | ₹1,811.32 |
| Current Liabilities | |||
| Short-term Borrowings | ₹2,652.61 | ₹2,656.76 | ₹1,617.70 |
| Trade Payables (Other than Micro and Small Enterprise) | ₹5,949.88 | ₹2,986.95 | ₹3,394.30 |
| Other Current Liabilities | ₹695.71 | ₹907.73 | ₹437.69 |
| Short-term Provisions | ₹280.99 | ₹38.60 | ₹92.82 |
| Total Current Liabilities | ₹9,579.19 | ₹6,590.04 | ₹5,542.51 |
| TOTAL EQUITY & LIABILITIES | ₹15,424.40 | ₹10,880.79 | ₹8,668.11 |
| Assets | |||
| Non-Current Assets | |||
| Tangible Assets | ₹3,432.95 | ₹2,943.75 | ₹3,375.09 |
| Capital Work In Progress | – | ₹121.30 | – |
| Deferred tax assets (net) | ₹30.94 | ₹42.26 | ₹49.35 |
| Long-Term Loans and Advances | ₹4.47 | ₹16.96 | ₹28.33 |
| Current Assets | |||
| Short-Term Loans and Advances | ₹1,587.51 | ₹676.81 | ₹569.65 |
| Other Current Assets | ₹131.93 | ₹316.68 | ₹6.42 |
| Trade Receivables | ₹4,141.05 | ₹2,672.03 | ₹2,014.42 |
| Inventories | ₹5,786.20 | ₹3,608.80 | ₹2,453.12 |
| Cash and Bank Balances | ₹309.35 | ₹434.37 | ₹169.73 |
| TOTAL ASSETS | ₹15,424.40 | ₹10,880.79 | ₹8,668.11 |
- Current assets are assets that are expected to be converted into cash or used up within one year. They include cash and cash equivalents, accounts receivable, inventories, and other current assets.
- Current liabilities are liabilities that are due within one year. They include accounts payable, accrued liabilities, and other current liabilities.
- Working capital is the difference between current assets and current liabilities. It is a measure of a company’s ability to meet its short-term financial obligations.
Here are some additional things to keep in mind when interpreting the working capital data:
- A positive working capital indicates that a company has more current assets than current liabilities. This is generally considered to be a good sign, as it means that the company has the resources to meet its short-term financial obligations.
- A negative working capital indicates that a company has more current liabilities than current assets. This is generally considered to be a bad sign, as it means that the company may have difficulty meeting its short-term financial obligations.
- A large working capital relative to the company’s total assets may indicate that the company is holding too much cash or other liquid assets. This could be a sign that the company is not investing its resources effectively.
- A small working capital relative to the company’s total assets may indicate that the company is having difficulty meeting its short-term financial obligations. This could be a sign that the company is facing financial difficulties.
It is important to consider all of these factors when interpreting working capital data.
Profit loss statement (in Rs. Lakhs)
| Particulars | 2023 | 2022 | 2021 |
|---|---|---|---|
| Revenue and Income: | |||
| Revenue from Operations | 16,188.57 | 10,982.24 | 9,123.79 |
| Other Income | 14.80 | 5.44 | 7.26 |
| Total Income | 16,203.37 | 10,987.68 | 9,131.05 |
| Expenses: | |||
| Cost of Materials Consumed | 9,855.29 | 5,104.61 | 5,481.85 |
| Construction Expense | 4,097.31 | 4,142.79 | 2,235.18 |
| Changes in Inventories of Finished Goods, WIP, and Traded Goods | (2,177.40) | (1,155.68) | (899.36) |
| Employee Benefits Expense | 1,038.15 | 893.68 | 675.79 |
| Finance Costs | 478.89 | 326.52 | 361.34 |
| Depreciation and Amortization Expense | 564.39 | 510.14 | 525.04 |
| Other Expenses | 668.79 | 433.07 | 143.86 |
| Total Expenses | 14,525.42 | 10,255.13 | 8,523.70 |
| Profit and Taxes: | |||
| Profit Before Tax | 1,677.95 | 732.55 | 607.35 |
| Tax Expenses | |||
| – Current Tax | 455.00 | 204.00 | 182.53 |
| – Excess Income Tax Provision Last Year Written Off | 7.01 | – | 0.44 |
| – Deferred Tax (Credit)/Charge | 11.32 | 7.09 | (19.46) |
| Total Tax Expenses | 473.33 | 211.09 | 163.51 |
| Profit for the Period/Year | 1,204.62 | 521.46 | 443.84 |
| Earnings Per Equity Share (EPS): | |||
| Basic/Diluted EPS (Pre Bonus) | 6.69 | 34.76 | 29.59 |
| Adjusted EPS (Post Bonus) | 6.69 | 2.90 | 2.47 |
Cash Flow Statement (in Rs. Lakhs)
| Particulars | March 31, 2023 | March 31, 2022 | March 31, 2021 |
|---|---|---|---|
| Net cash generated from/(used in) operating activities | 868.05 | 918.22 | 1060.42 |
| Net cash generated from/(used in) investing activities | 947.09 | 258.01 | 1299.99 |
| Net cash generated from/(used in) financing activities | -75.58 | 1376.28 | 106.13 |
Chavda Infra SME IPO Allotment Status Check
Check Chavda Infra SME IPO allotment status on the Linkintime website allotment URL. Click Here
On the IPO GMP Dashboard, you can view the live GMP status of all current and past IPOs (issues that have been closed but have not yet been listed). Moneyvigyan.com continually updates the performance of the IPO GMP. The listing price and the IPO GMP can be tracked and compared here on the IPO GMP Dashboard.
Is Chavda Infra a good investment?
Whether or not the Chavda Infra IPO is a good investment depends on a number of factors, including your investment goals, risk tolerance, and time horizon.
The company has a strong track record in the construction industry and has a good management team. However, it is important to note that the construction industry is cyclical and is susceptible to economic downturns. If the economy weakens, the demand for construction services may decline, which could impact the company’s revenue and profitability.
The company is also facing execution risks, such as delays in project completion and cost overruns. These risks could impact the company’s financial performance.
Overall, the Chavda Infra IPO is a high-risk, high-reward investment. If you are an investor who is looking for high returns, the Chavda Infra IPO could be a good option for you. However, if you are risk-averse, you may want to consider other investment options.
Here are some things to consider before investing in the Chavda Infra IPO:
- Your investment goals: Are you looking for short-term or long-term gains?
- Your risk tolerance: How much risk are you comfortable taking on?
- Your time horizon: How long are you willing to invest for?
- The company’s financial performance: How has the company performed in the past? What are its prospects for the future?
- The company’s management team: Is the management team experienced and qualified?
- The risks involved: What are the risks involved in investing in the company?
By carefully considering all of these factors, you can make an informed decision about whether or not to invest in the Chavda Infra IPO.
FAQs
When does the Chavda Infra SME IPO open and close?
Ratnaveer Precision Engineering IPO is open from 12th September to 14th September 2023.
What is the allotment date for Chavda Infra SME IPO?
The allotment date for Ratnaveer Precision Engineering IPO is 20th Sep 2023.
What is the listing date for Chavda Infra SME IPO?
The Ratnaveer Precision Engineering IPO will be listed on the 25st of September.
What is the price band for Chavda Infra SME IPO?
60-65
Disclaimer: No financial information published anywhere on this site should be interpreted as a recommendation to buy or sell securities or as any other kind of offer to do so. Every piece of material published on this site is just for educational and informational reasons and under no circumstances should be used to make financial decisions. Before actually making any investment decisions based on the information provided here, readers must seek the advice of a licensed financial professional. Any actions made by readers based on the material presented here are done so entirely at their own risk. Investors should be aware that any stock market investment is exposed to unpredictably high market risks. The author has no intention of investing in this IPO.
