Integrity Infrabuild Developers Limited has rapidly established itself as a notable player in India’s construction and engineering sector. With a strong foothold in Gujarat, the company engages in critical infrastructure projects including state highways, bridges, and government buildings, contributing significantly to regional development. Integrity Infrabuild Developers now seeks to expand its capital base by launching an Initial Public Offering (IPO) of ₹12.00 Crores.

IPO Details

The Integrity Infrabuild Developers IPO is a Fixed Price Issue offering 12 lakh fresh equity shares at ₹100 per share. The IPO subscription opens on May 13, 2025, and closes on May 15, 2025. Post subscription, the allotment is expected on May 16, 2025, and the shares will be listed on the NSE SME platform around May 20, 2025.

Investors can subscribe in multiples of the lot size, which is fixed at 1,200 shares. Retail investors need to invest a minimum of ₹1,20,000, while High Net Worth Individuals (HNIs) must invest at least two lots, totaling ₹2,40,000.

Aryaman Financial Services Limited is appointed as the Book Running Lead Manager, with MUFG Intime India Private Limited handling registrar duties. Aryaman Capital Markets Limited will act as the market maker for the IPO.

Financial Snapshot and Performance

Integrity Infrabuild Developers has demonstrated consistent revenue growth over recent years:

• Revenue for FY24 stood at ₹68.96 Crores, growing steadily from ₹45.23 Crores in FY22.

• EBITDA improved substantially from ₹1.74 Crores in FY22 to ₹5.71 Crores in FY24.

• Profit After Tax (PAT) also showed a positive trend, increasing from ₹0.30 Crores in FY22 to ₹1.94 Crores in FY24.

The management team includes experienced professionals such as Keyurkumar Sheth with over a decade of industry experience and Rajendrakumar Sheth, a veteran with over 30 years in construction and related sectors.

Valuation Metrics

At the IPO price of ₹100, the company’s market capitalization is estimated at ₹43 Crores. Key financial ratios are as follows:

• Pre-issue Earnings Per Share (EPS): ₹3.06

• Post-issue EPS: ₹2.21

• Pre-issue Price-to-Earnings (P/E) ratio: 32.68x

• Post-issue P/E ratio: 45.33x

• Industry average P/E: 37x

• Return on Capital Employed (ROCE): 13.14%

• Return on Equity (ROE) and Return on Net Worth (RoNW): 30.60% each

The annualized EPS is ₹8.36 with a P/E of 11.96x based on latest financials, indicating a fairly priced IPO relative to industry standards.

Use of Proceeds

The company plans to utilize the net proceeds for:

1. Capital expenditure of ₹5.03 Crores to acquire machinery and equipment

2. Working capital funding of ₹3.64 Crores

3. General corporate purposes requiring ₹2.40 Crores

Grey Market Premium (GMP) and Subscription Status

Currently, the Grey Market Premium is ₹0, reflecting no premium or discount on the issue price due to balanced demand and supply in the grey market. This zero GMP suggests that no listing gains are expected.

As of the final subscription day (May 15, 2025, 01:40 PM), the IPO is subscribed 1.80 times, showing moderate investor interest but no oversubscription frenzy.

IPO Allotment and Status Check

The allotment results are expected on May 16, 2025, accessible via the registrar's website. Investors can check their allotment status by:

• Visiting the IPO allotment status page

• Selecting Integrity Infrabuild Developers Limited IPO

• Entering application number, PAN, or DP Client ID

• Submitting details to view the status

Analyst Recommendation

Given the company's solid financial growth, experienced management, and reasonable valuation, the IPO offers a credible investment opportunity in the infrastructure sector. However, with no expected listing gains (indicated by zero GMP) and a slightly higher post-issue P/E compared to industry average, investors looking for short-term profits should exercise caution.

Investors aiming for long-term growth may consider the issue, but those seeking immediate listing gains should avoid this IPO.

The Upcoming IPOs in this week and coming weeks are Victory Electric Vehicles International, Borana Weaves, Dar Credit and Capital,Belrise Industries, Wagons Learning.

The Current active IPO are Accretion Pharmaceuticals, Integrity Infrabuild Developers.

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