Suntech Infra Solutions Limited, a Delhi-based infrastructure company engaged in heavy civil construction equipment rental and infrastructure development support services, is launching its Initial Public Offering (IPO) on the NSE SME platform.

The IPO will open for subscription from June 26 to June 28, 2025, and aims to raise ₹37.18 crore through a fresh issue of 42.24 lakh equity shares. There is no offer-for-sale (OFS) component.

IPO Details

• IPO Opening Date: June 26, 2025

• IPO Closing Date: June 28, 2025

• Issue Price Band: ₹85 to ₹88 per share

• Face Value: ₹10 per share

• Issue Size: ₹37.18 crore (Fresh Issue only)

• Lot Size: 1,600 shares

• Minimum Retail Investment: ₹1,40,800

• Listing Platform: NSE SME

• Tentative Listing Date: July 3, 2025

• Lead Manager: Beeline Capital Advisors Pvt Ltd

• Registrar: Skyline Financial Services Pvt Ltd

• Market Maker: Spread X Securities Pvt Ltd

Company Background

Suntech Infra Solutions Limited was incorporated in 2019 and is involved in providing heavy civil construction machinery on rent, including tower cranes, passenger hoists, boom placers, and concrete batching plants. The company caters to government infrastructure projects, high-rise buildings, flyovers, and bridges.

They also provide maintenance and operational services, strengthening their offerings as a complete infra-equipment support company.

Management Team

• Mr. Atul Lohia, Chairman and Managing Director, has 30+ years of experience in the infrastructure sector and equipment rental business.

• The leadership team brings technical, financial, and operational expertise with a deep understanding of the construction equipment segment.

Financial Performance

• Pre-Issue EPS (FY24): ₹11.21

• Post-Issue EPS: ₹6.67

• P/E (Post-Issue): 13.20x at ₹88

• Industry P/E Avg: ~20x

• ROE (FY24): 38.12%

• ROCE (FY24): 26.89%

• RoNW: 33.97%

Use of Proceeds

• Purchase of construction equipment

• Working capital requirements

• General corporate purposes

• Issue-related expenses

Strengths

• Strong revenue and PAT growth over the last 3 years

• High EBITDA and PAT margins compared to SME peers

• Operates in a niche B2B rental segment with growing demand

• Promoters with decades of experience in the infrastructure and equipment leasing space

Risks

• Client concentration from infrastructure contractors and government-linked projects

• Business is capital intensive, requiring large upfront equipment costs

• Project delays, payment cycles, or regulatory challenges can impact cash flows

• Dependent on continued infrastructure push from central and state governments

GMP & Listing Prospects

• Grey Market Premium (GMP): ₹5–₹7 (unofficial as of June 19)

• Expected listing gain: ~6–8% if GMP sustains

• GMP is speculative and should not be a sole criterion for investment

Valuation & Recommendation

The IPO is fairly valued at a P/E of 13.2x, considering the strong return ratios, consistent growth, and solid profit margins. The company benefits from India's infra-led economic expansion but operates in a highly specialised and cyclical space.

Disclaimer:
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

The Upcoming IPOs in this week and coming weeks are Suntech Infra Solutions, Shri Hare-Krishna Sponge Iron, Icon Facilitators, Ace Alpha Tech, Aakaar Medical Technologies, Safe Enterprises Retail Fixtures, Globe Civil Projects, Sambhav Steel Tubes, Ellenbarrie Indutrial Gases, Kalpataru, HDB Financials, AJC Jewel, Mayasheel Ventures.

The Current active IPO are  ArisInfra Solutions, Influx Healthtech, Eppeltone Engineers.

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