Integrity Infrabuild Developers Ltd. has swiftly risen to become one of the premier players in India's construction and engineering sector. The company is known for its role in national infrastructure projects, focusing on state highways, bridges, and key government buildings across Gujarat. With significant experience in executing large-scale projects, Integrity Infrabuild Developers is positioned as a key player in India’s infrastructure development.

The Integrity Infrabuild Developers IPO is a Fixed Price Issue, aiming to raise a total of ₹12.00 Crores. This issue consists entirely of a Fresh Issue of 12.00 Lakh shares, priced at ₹100 per share. The subscription period for the IPO will open on May 13, 2025, and close on May 15, 2025. The allotment of shares will be finalized on or about May 16, 2025, with a tentative listing on the NSE SME on May 20, 2025.

The lot size for the IPO is set at 1,200 shares, with retail investors required to invest a minimum of ₹1,20,000. For High-Net-Worth Individuals (HNIs), the minimum investment is 2 lots (2,400 shares), which totals ₹2,40,000.

The Grey Market Premium (GMP) of the Integrity Infrabuild Developers IPO is ₹0, indicating that there are no expected gains from the grey market. It’s important to note that the Grey Market Premium is an unofficial market activity and doesn't reflect the true value of the company before its listing on the stock exchange. The GMP is based on demand and supply dynamics in an unregulated market, and it's primarily for educational purposes.

Objectives of the Integrity Infrabuild Developers IPO:

Integrity Infrabuild Developers plans to use the net proceeds from the IPO for the following purposes:

• ₹503.00 Lakh for capital expenditure to purchase machinery and equipment.

• ₹364.00 Lakh to fund working capital requirements.

• ₹240.00 Lakh for general corporate purposes.

IPO Subscription Status and Allotment Process:

The subscription for the IPO opens on May 13, 2025, and investors can track the status of the subscription in real-time. The allotment status will be published on the registrar’s website on May 16, 2025, and investors can check it by entering their application number, PAN, or DP Client ID.

Key Financials:

As of the period ending December 31, 2024, Integrity Infrabuild Developers reported the following financial performance:

• Revenue from operations for FY 2024: ₹6,896.80 Lakh, an increase from ₹6,463.39 Lakh in FY 2023.

• EBITDA for FY 2024: ₹571.64 Lakh, compared to ₹371.36 Lakh in FY 2023.

• Profit after Tax (PAT) for FY 2024: ₹194.30 Lakh, up from ₹94.85 Lakh in FY 2023.

These figures show a consistent growth trajectory for the company.

Valuation and Performance Ratios:

The pre-issue EPS for FY24 stands at ₹3.06, while the post-issue EPS is projected to be ₹2.21. The company’s pre-issue P/E ratio is 32.68x, and the post-issue P/E ratio is 45.33x, compared to the industry P/E ratio of 37x. The Return on Capital Employed (ROCE) for FY24 is 13.14%, while the Return on Equity (ROE) and Return on Net Worth (RoNW) are both strong at 30.60%.

Based on the financial metrics and valuation, the IPO appears fairly priced, though the lack of Grey Market Premium could be a point of concern for investors looking for short-term gains.

Integrity Infrabuild Developers Ltd.: A Strong Growth Story

The company is helmed by experienced promoters, including Keyur Kumar Sheth (over a decade of experience in the construction industry), Rajendra Kumar Sheth (over 30 years of experience across industries), and Disha Keyur Kumar Sheth (over 5 years in construction). Together, they bring significant expertise in infrastructure development, particularly in Gujarat.

With a well-diversified portfolio spanning highways, bridges, and key government buildings, Integrity Infrabuild Developers has demonstrated its capability to execute large-scale infrastructure projects. The revenue growth, profitability, and strong promoters make it an attractive long-term investment, though the IPO is not expected to generate substantial listing gains based on current financial performance and GMP.

IPO Review & Recommendation:

While Integrity Infrabuild Developers IPO is backed by a solid growth story and experienced leadership, the Grey Market Premium (GMP) of ₹0 suggests that investors should avoid this IPO for short-term listing gains. The IPO is priced fairly, but long-term investors looking for exposure to the construction and infrastructure sector may find it worth considering based on the company's consistent growth and national projects portfolio.

The Upcoming IPOs in this week and coming weeks are Integrity Belrise Industries, Integrity Infrabuild Developers, Accretion Pharmaceuticals, Wagons Learning.

The Current active IPO are Virtual Galaxy Infotech.

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