MASON INFRATECH IPO Review - Issue Date, Price, GMP, Allotment, Lot Size, and Details

About MASON INFRATECH Limited

Mason Infrastructure, established in February 2020 as a dynamic partnership firm, swiftly evolved into Mason Infratech in April 2023, solidifying its status as a premier Engineering, Procurement, and Construction (EPC) company in India. They are real estate construction Company providing construction services for Residential as well as Commercial buildings of new and redevelopment projects. They specialize in executing civil contracts. They are also working on lifestyle projects and high-value standalone buildings. Their team is well-versed in the latest industry practices, ensuring that they remain up to date with the technological advancements in construction. They understand the unique requirements of each project and tailor their services accordingly. Their comprehensive suite of offerings covers the entire project lifecycle, including planning, designing, procurement, construction, and post-construction services. Their capabilities include constructing concrete building structures as well as composite steel structures. They also provide mechanical, electrical, and plumbing (“MEP”) and finishing works.

Their primary operational focus lies within the Mumbai Metropolitan Region (MMR). The Company is young, but the management carry several years of experience in the infrastructure business throughout India. With around 3.8 million sq. ft. of work in hand, the company’s focus is on timely execution of projects with premium quality of construction work. The company has received a Corporate Excellence Award in the year 2022 for Fastest Growing Construction Company (Integrated and Collaborative Working) from Brand Connect Network Private Limited.

They believe in their own equipment's such as formwork, tower cranes, passenger and material hoists, concrete pumps, threading and forging machinery, cutting, and bending machines, rack and pinion lift external (collectively, “Core Assets”) as this allows them to have timely access to key equipment required for their business. They believe these modern equipments help reduce the construction cycle time of replicating floors in a highrise construction compared to conventional formwork systems, such as conventional-plywood shuttering systems. 

INDIAN REAL ESTATE INDUSTRY

The real estate sector is one of the most globally recognized sectors. It comprises of four sub-sectors - housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth in the corporate environment and the demand for office space as well as urban and semi-urban accommodation. The construction industry ranks third among the 14 major sectors in terms of direct, indirect, and induced effects in all sectors of the economy.

In India, the real estate sector is the second-highest employment generator, after the agriculture sector. It was also expected that this sector will incur more non-resident Indian (NRI) investment, both in the short term and the long term. Bengaluru was expected to be the most favoured property investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi, and Dehradun.

By 2040, real estate market will grow to Rs. 65,000 crore (US$ 9.30 billion) from Rs. 12,000 crore (US$ 1.72 billion) in 2019. Real estate sector in India is expected to reach US$ 1 trillion in market size by 2030, up from US$ 200 billion in 2021 and contribute 13% to the country’s GDP by 2025. Retail, hospitality, and commercial real estate are also growing significantly, providing the much-needed infrastructure for India's growing needs. India’s real estate sector is expected to expand to US$ 5.8 trillion by 2047, contributing 15.5% to the GDP from an existing share of 7.3%. In FY23, India’s residential property market witnessed with the value of home sales reaching an all-time high of Rs. 3.47 lakh crore (US$ 42 billion), marking a robust 48% year-on-year increase. The volume of sales also exhibited a strong growth trajectory, with a 36% rise to 379,095 units sold. Indian real estate developers operating in the country’s major urban centres are poised to achieve a significant feat in 2023, with the completion of approximately 558,000 homes.
India’s real estate sector saw over 1,700 acres of land deals in top eight cities in the first nine months of FY22. Foreign investments in the commercial real estate sector were at US$ 10.3 billion from 2017- 2021. As of February 2022, Developers expected demand for office spaces in SEZs to shoot up after the replacement of the existing SEZs act.

INFRASTRUCTURE SECTOR IN INDIA

India’s high growth imperative in 2023 and beyond will significantly be driven by major strides in key sectors with infrastructure development being a critical force aiding the progress. 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. Prime Minister Mr. Narendra Modi also recently reiterated that infrastructure is a crucial pillar to ensure good governance across sectors.

The government’s focus on building infrastructure of the future has been evident given the slew of initiatives launched recently. The US$ 1.3 trillion national master plan for infrastructure, Gati Shakti, has been a forerunner to bring about systemic and effective reforms in the sector, and has already shown a significant headway. Infrastructure support to nation’s manufacturers also remains one of the top agendas as it will significantly transform goods and exports movement making freight delivery effective and economical. The "Smart Cities Mission" and "Housing for All" programmes have benefited from these initiatives. Saudi Arabia seeks to spend up to US$ 100 billion in India in energy, petrochemicals, refinery, infrastructure, agriculture, minerals, and mining. Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling India’s overall development and enjoys intense focus from Government for initiating policies that would ensure time-bound creation of world class infrastructure in the country. Infrastructure sector includes power, bridges, dams, roads, and urban infrastructure development. In other words, the infrastructure sector acts as a catalyst for India’s economic growth as it drives the growth of the allied sectors like townships, housing, built-up infrastructure, and construction development projects.

MASON INFRATECH LIMITED STRENGTHS

1. Experienced Promoters and access to skilled workforce
2. Customer-Centric Approach
3. Ownership of modern system formworks and other Core Assets
4. Optimal Utilization of Resources

MASON INFRATECH LIMITED STRATEGIES

1. Focus on Construction and Development of High-Rise & Sky Scrapper Buildings
2. Market Penetration
3. Focus on Redevelopment and Institutional Construction Projects
4. Focus on Construction and Development of High-Rise & Sky Scrapper BuildingS
5. Strategic Partnerships and Alliances

MASON INFRATECH LIMITED RISK FACTORS & CONCERNS

1. The business is manpower intensive, and they are dependent on the supply and availability of a sufficient pool of labourers from sub-contractors at their project locations.
2. Their primary operational focus lies within the Mumbai Metropolitan Region (MMR).
3. They are dependent on the availability of the prices of steel and ready-mix concrete.
4. They face competition from various regional real estate developers
5. They may not be successful in implementing their business strategies.