Suntech Infra Solutions Limited, a New Delhi-based civil infrastructure company, is launching its Initial Public Offering (IPO) on the NSE SME platform. The company has grown by executing civil foundation and structural works, and renting out construction equipment across several core industrial sectors in India.

This IPO, a Book Built Issue, opens on June 25, 2025, and closes on June 27, 2025, offering an issue size of ₹54.58 Crores, divided into:

• Fresh Issue: ₹44.38 Crores (51.61 lakh shares)

• Offer for Sale (OFS): ₹10.20 Crores (11.87 lakh shares)

The company has set a price band of ₹81 to ₹86 per equity share, and at the upper band, the expected market capitalisation stands at ₹176.72 Crores.

The lot size for the issue is 1,600 shares, requiring a minimum investment of ₹1,37,600 for retail investors, while HNIs must invest at least ₹2,75,200 (2 lots).

GYR Capital Advisors Private Limited is acting as the Book Running Lead Manager, MAS Services Limited is the registrar, and Giriraj Stock Broking Private Limited is the market maker for the IPO.

Company Overview

Suntech Infra Solutions Limited is engaged in civil construction services, specifically:

• Civil Foundation Works

• Civil Structural Works

• Construction Equipment Rentals

The company undertakes direct contracts and sub-contracting assignments, having worked with both public and private sector clients. Their portfolio includes industries such as:

• Power

• Oil & Gas

• Steel

• Cement

• Renewable Energy

• Refineries

• Petrochemicals

• Fertilizers

• Process Plants

The company is led by Mr. Gaurav Gupta, who serves as Chairman, Managing Director, and Promoter. With over 15 years of experience, Mr. Gupta’s technical expertise and strategic decision-making have helped scale the company’s operations.

Financial Performance

Suntech Infra has demonstrated a steady financial performance over the past few years, with consistent revenue growth and profitability:

Revenue from Operations

• FY22: ₹7,231.76 Lakh

• FY23: ₹8,619.37 Lakh

• FY24: ₹9,625.45 Lakh

• 9M FY25 (till Dec 31, 2024): ₹9,124.77 Lakh

EBITDA

• FY22: ₹1,358.95 Lakh

• FY23: ₹2,058.94 Lakh

• FY24: ₹2,747.31 Lakh

• 9M FY25: ₹2,996.07 Lakh

Profit After Tax (PAT)

• FY22: ₹302.45 Lakh

• FY23: ₹575.60 Lakh

• FY24: ₹924.52 Lakh

• 9M FY25: ₹1,027.73 Lakh

The above numbers reflect robust operational scalability, with EBITDA and PAT nearly tripling in two years. The 9-month FY25 figures also indicate the company is on track to outperform FY24, signaling business momentum.

Valuation and Key Metrics

• Pre-Issue EPS (FY24): ₹6.21

• Post-Issue EPS (FY24): ₹4.50

• Annualized EPS: ₹6.67

• Pre-Issue P/E Ratio: 13.85x

• Post-Issue P/E Ratio: 19.12x

• Annualized P/E Ratio: 12.90x

• Industry Average P/E Ratio: 43x

Return Ratios (FY24)

• Return on Capital Employed (ROCE): 17.28%

• Return on Equity (ROE): 28.50%

• Return on Net Worth (RoNW): 23.97%

These ratios show healthy returns and suggest the IPO is fairly priced or even attractive relative to the sector average. The high ROE and RoNW further support the company’s efficient use of equity capital.

Use of IPO Proceeds

The company plans to allocate the net proceeds towards the following:

1. ₹1,221.00 Lakhs – For working capital requirements

2. ₹1,251.00 Lakhs – For capital expenditure on construction equipment

3. Balance – For general corporate purposes

The capital infusion into equipment purchase is strategically important to improve asset availability and cost competitiveness, while working capital enhancement supports business scalability.

Grey Market Premium (GMP) and Listing Outlook

As of June 20, 2025, the Grey Market Premium for Suntech Infra Solutions IPO stands at ₹14, indicating an expected listing price of ₹100, or a 16.31% premium over the upper band price of ₹86.

GMP Trend (20 June 2025)

• IPO Price: ₹86

• Expected Listing Price: ₹100

• GMP: ₹14 (16.31%)

• Last Updated: 5:00 PM, 20 June 2025

While GMP is not an official indicator, it provides a sentiment benchmark for short-term investors, especially those looking for listing gains.

Allotment and Listing

The IPO allotment will be finalized on June 30, 2025, and will be available on MAS Services Limited's website. Investors can check their allotment status by entering their PAN, Application No., or DP ID.

The listing date on the NSE SME platform is tentatively set for July 2, 2025.

Expert Review: Should You Invest?

Based on current financials, valuations, and market sentiment, here's a summary:

Positives:

• Strong revenue and profit growth

• Impressive margins and capital returns

• Diversified client base across critical industries

• Strategic reinvestment into core assets (equipment)

• Competitive pricing with P/E lower than industry average

• GMP suggests potential listing gains

Concerns:

• Large minimum investment (₹1.37 lakh) may limit retail participation

• SME IPOs are illiquid post-listing, requiring cautious short-term trading

• Cyclicality of construction industry may impact future performance

Recommendation:

Given the robust fundamentals, growth trajectory, and positive GMP, the IPO may be considered by risk-tolerant investors seeking listing gains or mid-term appreciation.

Conclusion

Suntech Infra Solutions IPO presents an opportunity to invest in a growing civil infrastructure company with a proven track record and solid financials. While not without risks, its strategic use of capital, scalable business model, and strong return ratios make it one of the more promising SME IPOs this season.

High-risk investors looking for listing gains or short- to mid-term growth may consider applying. However, conservative investors should monitor final day subscription figures before committing.

Disclaimer:
This review is for educational and informational purposes only and should not be construed as investment advice. Please consult a SEBI-registered advisor before making any investment decision. IPO investments are subject to market risks. Always read the Red Herring Prospectus (RHP) and other related documents carefully.

The Upcoming IPOs in this week and coming weeks are Pushpa Jewellers, Cedaar Textile, Adcounty Media India, Marc Loire Fashions, Indogulf Cropsciences, Moving Media Entertainment, Rama Telecom, Supertech EV, Valencia India, Neetu Yoshi, PRO FX Tech, Suntech Infra Solutions, Ace Alpha Tech, Sambhav Steel Tubes, HDB Financials.

The Current active IPO are  Abram Food, Shri Hare-Krishna Sponge Iron, Icon Facilitators, Globe Civil Projects, Ellenbarrie Indutrial Gases, Kalpataru,AJC Jewel, Aakaar Medical Technologies, Safe Enterprises Retail Fixtures, Mayasheel Ventures.

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