Chavda Infra LTD. IPO: Review, Valuation,Date & Todays GMP

Chavda Infra Limited - Complete Overview

Founded in 2012, Chavda Infra Limited is a part of the Chavda Group, serving as an integrated civil construction company that offers a diverse range of construction and related services across residential, commercial, and institutional projects in Gujarat, particularly in Ahmedabad and Rajkot.

The company provides a comprehensive suite of services across the construction value chain, encompassing everything from planning and design to construction and post-construction activities for its clients. Additionally, the company possesses in-house capabilities to manage a project from conceptualization to completion, with a rapid turnaround time from project acquisition to launch and ultimate completion.

Since its inception, the company has been involved in the construction of several notable buildings in Ahmedabad, including residential projects such as Straft Laxuria, Shivalik Parkview, and Shivalik Sharda Harmony, as well as commercial projects like AAA Corporate House, Sadbhav House, Solitaire Sky, Sandesh Press, Suyash Solitaire, and Solitaire Connect. They have also contributed to institutional projects like AIS Toddler’s Den, Nirma University (old Building), and Zydus School & Excellence.

Over the years, the company has successfully completed more than 100 projects with a total value of Rs. 67,099.45 Lakhs. As of May 31, 2023, Chavda Infra Limited has 26 ongoing projects with an approximate value of Rs. 60,139 Lakhs, highlighting a robust order book. Among these ongoing projects, 4 are commercial, 4 are institutional, and 18 are residential.

The company derives its revenue from three primary business verticals: Contracting Services, Development Services, and Commercial Renting Services. It holds an ISO 9001:2015 certification for its quality management system, awarded by BCQ Assessment Private Limited, covering the construction of commercial, residential, and institutional buildings.

With a workforce of more than 250 employees, Chavda Infra Limited achieved revenue from operations amounting to Rs. 16,188.57 Lacs for the fiscal year ending on March 31, 2023.

 

What does the company do? 

Chavda Infra Limited is serving as an integrated civil construction company that offers a diverse range of construction and related services across residential, commercial, and institutional projects in Gujarat, particularly in Ahmedabad and Rajkot.

 

 

IPO Overview 

The Chavda Infra Limited IPO date is scheduled from September 12th to September 14th, 2023, and it is anticipated to be listed on NSE SME on September 25th, 2023.

Chavda Infra Limited IPO price is set at a price range of Rs. 60 to Rs. 65 per share, with a face value of Rs.10 per share. The company aims to raise Rs. 43.26 Crores from this SME IPO to fulfil various objectives.

For the latest updates on upcoming IPOs, please refer to the Finowings IPO section to stay well-informed.

 

Chavda Infra Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	12 September 2023
IPO Closing Date	14 September 2023
IPO Allotment Date	20 September 2023
Refund initiation	21 September 2023
IPO Listing Date	25 September 2023

 

Chavda Infra Limited IPO Details 

IPO Opening & Closing Date	12 September to 14 September 2023
Face value	Rs.10 per share
Issue Price	Rs. 60 to Rs. 65 per share
Lot Size	2000 Shares
Price of 1 lot	Rs.130,000
Issue Size	6,656,000 Shares (aggregating up to Rs. 43.26 Cr)
Offer for sale	NA
Fresh issue	6,656,000 Shares (aggregating up to Rs. [.] Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Kfin Technologies Ltd.

 

Chavda Infra Limited IPO Lot Details 

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	1 Lot
Minimum Lot Investment (HNI)	2 Lot

 

Chavda Infra Limited IPO Reservation

Institutional Share Portion	50%
Non-institutional share Portion	15%
Retail Share Portion	35%

 

Company Financial

Amount in Lakhs

Period	FY - 21	FY - 22	FY - 23
Total Assets	8668.11	10880.79	15424.40
Total Revenue	9131.05	10987.68	16203.37
PAT	443.84	521.46	1204.62
Net Worth	1314.28	1835.74	3040.36
Reserve & Surplus	1164.28	1685.74	1240.36
Total Borrowings	3330.32	4993.14	5328.95

 

Category-wise Revenue Bifurcation of Chavda Infra Limited

(Amount in Lakhs)

Particulars	FY 2022-23	FY 2022-21	FY  2020-21
Construction Income	14,882.05	10,890.68	8,971.93
Developer Income	1,165.67	-	-
Rent Income	140.85	91.56	76.40
Ready-mixed concrete Sale	-	-	75.46
Total	16,188.57	10,982.24	9,123.79

 

Objective of the Issue 

The funds raised will be allocated for the following purposes:

• Addressing working capital needs.
• Supporting general corporate objectives.
• Covering expenses related to the public issue.

 

Promoters and Management of Chavda Infra Limited

Mr. Mahesh Gunvantlal Chavda, Mr. Johil Mahesh Chavda and Mrs. Dharmistha Mahesh Chavda are the promoters of the company.

Pre-issue Promoter Shareholding	100%
Post-issue Promoter Shareholding	73%

 

Peer Comparison

The following companies are the listed peers of Chavda Infra Limited:

Company Name	EPS (Rs.) Basic	P/E Ratio	Revenue from operations (Rs. in Lakhs)
Chavda Infra limited	6.69	-	16,188.57
PSP Projects Limited	36.95	18.16	1,92,664.91
Ahluwalia Contracts (India) Limited	28.98	19.90	2,83,839.33

 

IPO's Valuations

With Chavda Infra Limited setting its share price in the range of Rs. 60 to Rs. 65 per share and the company's EPS at Rs. 6.69, we can leverage the given data to calculate the P/E ratio for the IPO valuation by considering the upper end of the issue price. Based on the data, the company's P/E ratio stands at approximately 9.71.

 

Dividend Policy 

The company has not distributed dividends over the past three fiscal years, and any potential future dividend payments will be contingent on the company's financial performance.

 

IPO's Strengths 

• Highly skilled and seasoned Promoters and Management Team.
• Comprehensive and proficient project execution capabilities.
• Efficient and effective use of available resources.
• Evident growth is driven by a strong and substantial order book.
• Established and enduring partnerships with our clientele.

 

IPO Weaknesses

• The company derived 100% of its revenue exclusively from Gujarat.
• The company depend on a limited number of customers for its sales.
• The company is currently entangled in ongoing legal disputes.
• Its revenues stemming from projects are challenging to predict and are subject to seasonal fluctuations.
• The company has accumulated a substantial amount of debt.
• There are noted discrepancies and non-compliances in some of the company's financial reporting and records, particularly concerning the filing of returns and the deposit of statutory dues with taxation and other regulatory bodies.
• The company faces significant competition within the industry.
• In the ordinary course of business, the company necessitates specific regulatory approvals and licenses.
• The Company had experienced negative cash flow from operating activity in recent fiscals.

 

 

IPO GMP Today 

Latest GMP of Chavda Infra SME IPO is Rs. 30.

 

Conclusion

The Chavda Infra Limited IPO offers a promising investment opportunity in the construction industry. With a robust order book and sound financial performance, investors are encouraged to consider participating in the offering after conducting a thorough analysis to maximize potential returns.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

 

 

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