Suntech Infra Solutions Limited is a growing civil construction services company offering a wide range of services including civil foundation works, civil structural works, and renting of construction equipment. The company serves both public and private sectors, with projects across major industries such as power, oil & gas, steel, cement, renewable energy, refineries, petrochemical plants, fertilizer plants, and process plants.

IPO Details

The company has launched its initial public offering (IPO) with a book-built issue size of ₹54.58 Crores. The IPO consists of:

• Fresh issue of 51.61 lakh shares worth ₹44.38 Crores

• Offer for sale (OFS) of 11.87 lakh shares worth ₹10.20 Crores

The subscription window is from June 25, 2025, to June 27, 2025, with an expected allotment date of June 30, 2025, and tentative listing date on NSE SME on July 2, 2025.

The price band is fixed at ₹81 to ₹86 per share, with the company’s market capitalization expected to be ₹176.72 Crores at ₹86 per share. The IPO lot size is 1,600 shares, which means retail investors need a minimum investment of ₹1,37,600, while High Net Worth Individuals (HNIs) must apply for a minimum of 2 lots (₹2,75,200).

GYR Capital Advisors Private Limited is the book running lead manager, MAS Services Limited acts as the registrar, and Giriraj Stock Broking Private Limited is the market maker.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for Suntech Infra Solutions IPO currently stands at ₹14, implying a potential listing gain of approximately 16.31% over the upper price band of ₹86.

While GMP is unofficial and dependent on demand-supply dynamics in unorganized markets, it reflects strong positive market sentiment around this IPO.

Subscription Status

As of 11:00 AM on June 25, 2025, the IPO was subscribed 1.17 times on the very first day, showing healthy investor interest.

Anchor Investors

The company has secured ₹12.63 Crores from anchor investors at the upper price band of ₹86 per share, allocating 14,68,800 equity shares to these institutional investors. This strong anchor subscription is a positive indicator of confidence in the IPO.

Financial Performance

Suntech Infra Solutions has demonstrated robust financial growth over recent years:

These figures indicate consistent growth in revenue, EBITDA, and profit after tax, highlighting the company’s expanding operational efficiency and scale.

Valuation Metrics

• Pre-issue EPS (FY24): ₹6.21

• Post-issue EPS (FY24): ₹4.50

• Pre-issue P/E Ratio: 13.85x

• Post-issue P/E Ratio: 19.12x

• Industry P/E Benchmark: 43x

• ROCE (FY24): 17.28%

• ROE (FY24): 28.50%

• RoNW: 23.97%

• Annualised EPS: ₹6.67

• Annualised P/E Ratio: 12.90x

The IPO is priced reasonably below the industry average P/E, with solid return ratios suggesting attractive long-term value for investors willing to hold beyond listing gains.

IPO Objectives

The company intends to deploy the net proceeds from the IPO towards:

1. ₹12.21 Crores for working capital requirements, helping sustain growth and operations

2. ₹12.51 Crores for capital expenditure to purchase construction equipment for civil construction business

3. General corporate purposes to enhance business scalability and operational agility

Leadership and Management

Suntech Infra Solutions is led by Mr. Gaurav Gupta, who serves as the Chairman, Managing Director, and Promoter. With over 15 years of industry experience, he has been the driving force behind the company’s strategic direction and operational growth.

Analyst Verdict

Given the healthy GMP, solid financials, and reasonable valuation, the IPO looks attractive particularly for risk-tolerant investors seeking listing gains and growth exposure in the infrastructure sector.

The presence of a strong anchor book and steady subscription pace underpin positive market sentiment. However, investors should consider industry cyclicality and market conditions before investing.

Conclusion

Suntech Infra Solutions IPO offers a promising opportunity to participate in India’s civil construction and infrastructure services sector. With ₹14 GMP indicating listing gains, solid financial growth, and a fair valuation, the IPO is recommended for investors with a moderate to high risk appetite targeting short-term gains and long-term value.

Disclaimer:
This review is for informational purposes only and should not be taken as financial advice. Please consult a certified financial advisor before investing. Investments in equity markets are subject to risks, and past performance does not guarantee future returns.

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