Mahendra Realtors & Infrastructure Limited (formerly Mahendra Realtors & Infrastructure Private Limited) is a prominent construction company based in Mumbai, established in 2007. Specializing in turnkey projects and contracting, Mahendra Realtors has successfully completed over 500 high-quality projects across India. Their reputation is built on timely project delivery, use of modern technology, and superior craftsmanship, distinguishing them in the competitive construction industry.

The company is launching a Book Built Issue IPO amounting to ₹49.45 Crores. This includes a fresh issue of 47.26 Lakh shares worth ₹40.17 Crores and an offer for sale of 10.91 Lakh shares totaling ₹9.27 Crores. The IPO subscription period is open from August 12, 2025, to August 14, 2025. The allotment is expected on or about August 18, 2025, with shares to be listed on the NSE SME platform tentatively on August 20, 2025.

The IPO price band is fixed between ₹75 and ₹85 per equity share. At the upper price band of ₹85 per share, the company’s market capitalization will be approximately ₹187.88 Crores. The IPO lot size is 1,600 shares, and retail investors must apply for at least 2 lots (3,200 shares), requiring a minimum investment of ₹2,72,000.

The IPO’s book running lead manager is FAST TRACK FINSEC PRIVATE LIMITED, while MUFG INTIME INDIA PRIVATE LIMITED is the registrar. Rikhav Securities Limited is the designated market maker for the IPO.

The current Grey Market Premium (GMP) for Mahendra Realtors IPO stands at ₹9, signaling potential listing gains of about 10.78%. However, investors should note that GMP is unofficial, based on unregulated demand and supply, and should be interpreted cautiously.

The company is led by experienced promoters including Mr. Hemanshu Shah, with 18 years of experience in infrastructure, civil construction, redevelopment, and BOT projects. Other key promoters include Mr. Bhavesh Mahendrakumar Shah, Ms. Hetal Bhavesh Shah, Ms. Chandrika Mahendra Shah, and Ms. Varsha Hemanshu Shah, who collectively bring extensive expertise and leadership to the company.

Financially, Mahendra Realtors has shown steady growth. Revenues for fiscal years ended March 31, 2025, 2024, and 2023 were ₹12,869.25 Lakh, ₹10,510.96 Lakh, and ₹6,606.63 Lakh, respectively. EBITDA rose from ₹903.59 Lakh in 2023 to ₹2,189.89 Lakh in 2025, while profit after tax grew from ₹404.12 Lakh in 2023 to ₹1,486.63 Lakh in 2025.

Key financial indicators include a pre-issue EPS of ₹8.55 and a post-issue EPS of ₹6.73 for FY24. The pre-issue Price-to-Earnings (P/E) ratio is 9.94x, and post-issue P/E is 12.64x, compared to an industry average of 38x. The company reports a Return on Capital Employed (ROCE) of 30.56%, Return on Equity (ROE) of 23.43%, and Return on Net Worth (RoNW) of 23.43%, reflecting solid financial health and a fairly priced IPO.

Proceeds from the IPO will be primarily used to meet the company’s working capital requirements (₹3,040.00 Lakh), general corporate purposes, and cover issue expenses.

Considering the strong financial performance and reasonable GMP, the IPO may attract investors with a moderate risk appetite seeking exposure to Mumbai’s growing construction sector. However, as always, investors should evaluate risks and market conditions before applying.

The Upcoming IPOs in this week and coming weeks are Studio LSD, Shreeji Shipping Global, Patel Retail.

The Current active IPO are Regaal Resources, Mahendra Realtors and Infrastructure, Bluestone Jewellery and Lifestyle, Icodex Publishing Solutions, Star Imaging and Path Lab, Medistep Healthcare, ANB Metal Cast.

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