Integrity Infrabuild Developers Ltd IPO: An In-Depth Look
Stay updated on the upcoming IPO of Integrity Infrabuild Developers Limited. This blog post offers a detailed analysis of the company, its financials, IPO objectives, and potential factors for investors to consider. (Last Updated: Based on information available as of early May 2025)
About Integrity Infrabuild Developers Limited
Integrity Infrabuild Developers Limited, established in 2017, operates as a Class-A civil contractor registered with the Gujarat government. The company specializes in executing various government construction projects, including roads, buildings, and bridges. It also undertakes subcontracting work to broaden its footprint within Gujarat's dynamic construction industry. Headed by CEO Mr. Keyurkumar Sheth, the company has built a reputation for its project management capabilities.
As of March 31, 2025, Integrity Infrabuild Developers holds a significant order book. The total value of contracts stood at ₹20,598 lakhs, out of which projects worth ₹4,291 lakhs have been completed. This leaves an active order book of ₹16,307 lakhs, indicating a strong pipeline of future work.
Key Competitors:
- Udayshivakumar Infra Limited
- V R Infraspace Limited
Integrity Infrabuild Developers IPO: Key Details
The company is set to launch its Initial Public Offering (IPO) to raise capital. Below are the essential details:
| Particulars | Details |
|---|---|
| IPO Open Date | 13 May 2025 |
| IPO Close Date | 15 May 2025 |
| Expected Listing Date | 20 May 2025 |
| IPO Price | ₹100 per share (Fixed Price) |
| Total IPO Size | ₹12.00 Crores |
| Issue Type | Fresh Issue of ₹12.00 Crores |
| Listing Exchange | NSE SME |
| Registrar | Link Intime India Private Ltd |
| Lead Manager | Aryaman Financial Services Limited |
| RHP (Red Herring Prospectus) | Investors are advised to refer to the RHP for comprehensive details. |
IPO Journey: Timeline Overview
The progress bar indicates key milestones in the IPO process. Dates are tentative and subject to change.
Purpose of the IPO Issue
The net proceeds from the fresh issue are proposed to be utilised for the following objectives:
- Purchase of machinery and equipment to enhance operational capabilities.
- Funding working capital requirements to support ongoing and future projects.
- General corporate purposes, which may include strategic initiatives or unforeseen expenses.
Investment Quantum: Lot Size Details
Investors can apply for the Integrity Infrabuild Developers IPO in lots. The details are as follows:
| Application Category | Lots | Shares per Lot | Minimum Investment Amount |
|---|---|---|---|
| Retail (Minimum) | 1 | 1200 | ₹120,000 |
| Retail (Maximum) | 1 | 1200 | ₹120,000 |
| HNI (Minimum) | 2 | 2400 | ₹240,000 |
Financial Performance Snapshot
A look at Integrity Infrabuild Developers' financial health over the past few fiscal years:
Profit and Loss Highlights (₹ in Crores)
| Particulars | FY22 | FY23 | FY24 |
|---|---|---|---|
| Revenue | 33.48 | 45.23 | 64.63 |
| EBITDA | 1.61 | 2.63 | 3.57 |
| Profit After Tax (PAT) | 0.30 | 0.29 | 0.95 |
Balance Sheet Key Figures (₹ in Crores)
| Particulars | FY22 | FY23 | FY24 |
|---|---|---|---|
| Total Assets | 13.06 | 15.25 | 20.68 |
| Share Capital | 2.55 | 1.78 | 3.10 |
| Total Borrowings | 6.51 | 5.22 | 11.17 |
Cash Flow Summary (₹ in Crores)
| Particulars | FY22 | FY23 | FY24 |
|---|---|---|---|
| Net Cash from Operating Activities | -0.47 | 4.63 | 0.80 |
| Net Cash from Investing Activities | -2.78 | -0.90 | -7.25 |
| Net Cash from Financing Activities | 4.32 | -2.93 | 5.79 |
| Net Change in Cash & Equivalents | 1.07 | 0.79 | -0.66 |
Financial data is crucial for assessing a company's performance and stability. Potential investors should analyze these figures in conjunction with other qualitative factors.
Promoter Details and Holdings
The company is promoted by individuals with experience in the construction sector. Mr. Keyurkumar Sheth is the CEO of the company.
Information regarding the pre-issue and post-issue promoter shareholding will be detailed in the Red Herring Prospectus (RHP). Investors should refer to the RHP for precise figures once available.
Anchor Investor Information
Details regarding anchor investor participation, if any, are typically announced closer to the IPO opening date, usually one working day prior. This information will be updated once publicly available and can be found in regulatory filings.
Strategic Analysis: Strengths and Considerations
Key Company Strengths
- Specialized expertise in constructing roads, buildings, and bridges.
- Strong project management capabilities backed by significant industry experience.
- Visible growth trajectory supported by a substantial and active order book.
- Demonstrated financial performance coupled with technical capabilities and necessary resources.
Points to Consider (Potential Risks)
- Business operations are geographically concentrated in Gujarat, making it reliant on local government contracts and regional economic conditions.
- Exposure to regulatory, economic, and policy changes specific to the state of Gujarat.
- The company carries a notable level of indebtedness, which requires consistent and substantial cash flow for servicing debt obligations.
- Dependency on a limited number of clients could pose a risk to revenue stability if key contracts are not renewed or are terminated.
Growth Avenues and Market Outlook
Growth Opportunities
- Potential to expand market share within Gujarat's rapidly growing infrastructure sector.
- Increasing government focus on infrastructure development and higher capital expenditure allocations present new project opportunities.
- Scope for diversification into new geographical regions or different types of construction projects beyond the current focus in Gujarat.
- Adoption of technological advancements can lead to more efficient construction methods and improved project execution.
Potential Market Challenges
- The civil contracting industry is characterized by intense competition from established and new players.
- Fluctuations in the costs of essential raw materials (like cement, steel) can impact project profitability.
- Delays or cancellations of government projects due to policy shifts, funding issues, or administrative hurdles.
- Broader economic downturns can negatively affect government spending on infrastructure, impacting contract awards and project pipelines.
Key Highlights for Potential Investors
Considering an investment in the Integrity Infrabuild Developers IPO? Here are some factors to weigh:
- Robust Order Book: An active order book of ₹16,307 lakhs provides strong revenue visibility for the near future.
- Consistent Financial Growth: The company has shown consistent growth in revenue and EBITDA over the last three reported financial years.
- Strategic Use of IPO Proceeds: Funds raised are earmarked for acquiring machinery and bolstering working capital, which can support operational expansion and efficiency.
- Favorable Industry Dynamics: Operates in Gujarat’s burgeoning infrastructure sector with established Class-A contractor credentials, positioning it to benefit from ongoing development.
Understanding the Industry Landscape
The infrastructure sector is a key driver of economic growth, and Integrity Infrabuild Developers operates within this vital space.
- India’s overall construction sector is projected for significant expansion, with some estimates suggesting an annual growth rate of around 11.2% by 2025.
- The state of Gujarat continues to approve and initiate major road and infrastructure projects. For example, recent approvals include a substantial six-lane highway project valued at approximately ₹8 billion.
- The national government's focus on infrastructure is evident, with the capital expenditure for FY25 being raised by 11.1% to ₹11.1 trillion, which is expected to fuel demand for construction services.
- Industry analysts (like ICRA) anticipate a healthy revenue growth of 8–10% for construction firms in FY25, driven by government spending and a strong order pipeline across the sector.
A positive industry outlook can provide a supportive environment for companies like Integrity Infrabuild Developers. However, sector-specific risks and competition also play a role.
Company Contact & Registrar Details
Integrity Infrabuild Developers Limited
Office No-02, Indiabulls Mega Mall,
Jetalpur Road, Akota
Phone: +91 87340 92229
Email: info@integrityinfrabuild.com
Website: https://integrityinfrabuild.com/ (External Link)
IPO Registrar: Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: Integrityinfra.ipo@linkintime.co.in
Website: https://linkintime.co.in/Initial_Offer/public-issues.html (External Link)
Conclusion
The Integrity Infrabuild Developers Ltd IPO presents an opportunity for investors to participate in a company operating in Gujarat's construction sector. With a solid order book, consistent financial growth, and clear objectives for fund utilization, the company is positioning itself for future expansion. However, potential investors should carefully evaluate the company's financials, industry-specific risks, competitive landscape, and the concentration of its business in Gujarat before making any investment decisions. Consulting with a financial advisor and thoroughly reviewing the RHP is always recommended.
Disclaimer: Investing in IPOs and the stock market involves risks, including the potential loss of principal. The information provided in this blog post is for informational and analytical purposes only and should not be construed as financial advice. Past performance is not indicative of future results. Please conduct your own due diligence or consult with a qualified financial advisor before making any investment decisions.
Frequently Asked Questions (FAQs)
When does the Integrity Infrabuild Developers IPO open and close?
The Integrity Infrabuild Developers IPO will be open for subscription from 13 May 2025 to 15 May 2025.
What is the total size of the Integrity Infrabuild Developers IPO?
The total size of the Integrity Infrabuild Developers IPO is ₹12.00 Crores, which is entirely a fresh issue.
What is the price band for the Integrity Infrabuild Developers IPO?
The IPO price for Integrity Infrabuild Developers is fixed at ₹100 per share.
How can one apply for the Integrity Infrabuild Developers IPO?
Investors can apply for the IPO through their stockbroker's platform (app or website) using their UPI ID for payment. The general steps involve selecting the IPO, entering lot size and price, and authorizing the UPI mandate.
What is the minimum lot size and investment required for this IPO?
The minimum lot size for the Integrity Infrabuild Developers IPO is 1,200 shares, requiring a minimum investment of ₹120,000 for retail investors.
What is the expected allotment date for the Integrity Infrabuild Developers IPO?
The share allotment for the Integrity Infrabuild Developers IPO is expected to be finalized on 16 May 2025.
When is the Integrity Infrabuild Developers IPO expected to be listed?
The Integrity Infrabuild Developers IPO is likely to be listed on the NSE SME platform on 20 May 2025.
Who is the lead manager for the Integrity Infrabuild Developers IPO?
Aryaman Financial Services Limited is the Book Running Lead Manager for this IPO.
What are the main objectives of the Integrity Infrabuild Developers IPO?
The company plans to use the net proceeds from the IPO for:
- Purchase of machinery and equipment.
- Funding its working capital requirements.
- General corporate purposes.