Indifra Ltd IPO: Review, Valuation, Opening Date & GMP

Indifra Limited IPO  - Complete Overview

Indifra Ltd started in 2009. They do two main things: manage infrastructure and contracts, and distribute gas pipelines and electrical stuff. Their customers are gas supply companies. They help them with their gas pipelines and other things. They also work with companies like Adani Gas Limited and V-Guard.

In the electrical business, they offer things like voltage stabilisers, cooktops, inverters, batteries, fans, switches, and more. They're a small company with 11 employees. Before, they were called Starleads Consultants Private Limited.

Their goal is to be a leader in infrastructure, gas pipelines, and electrical distribution. They focus on safety and innovation. Whether it's managing construction projects or delivering top-notch electrical appliances, they're dedicated to making the future smarter, safer, and sustainable. Choose Indifra for growth, reliability, and satisfied customers.

Industry Overview

The global economy is facing uncertainties due to the impact of the pandemic, challenges like the Ukraine conflict, and efforts to manage rising prices. The cost of energy has gone down since 2022, mostly because China is getting better after the pandemic. But there's a worry that prices might start going up again. Around the world, prices were 7.2% higher in April compared to last year. Recently, there have been problems with banks, making it hard for the money situation to stay stable, and there's a chance of more money problems in the future.

Countries that are still growing, especially those that are just starting to become big players (emerging markets), are having a tough time because of strict money rules and worries about prices going up. In South Asia, India's growth is expected to slow down to 6.3% in the financial year 2023/24 because of high prices and the government spending less money. The region is also dealing with people thinking prices will go up and risks in the money sector. So, the big picture of the money world is tricky and always changing, bringing both problems and opportunities.

Indifra Limited IPO Overview

Indifra Limited IPO date is slated to be open for subscription from December 21, 2023, to December 26, 2023. This NSE SME IPO follows a Fixed Price Issue IPO.

Indifra Limited IPO price is fixed at Rs. 65 per share. The upcoming NSE SME IPO will be listed on December 29, 2023.

The total issue size of this IPO amounts to Rs.14.04 CR. Within this total issue, 50% is issued to retail investors, and 50% is issued to other investors.

Indifra Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	21 December 2023
IPO Closing Date	26 December 2023
IPO Allotment Date	27 December 2023
Refund initiation	28 December 2023
IPO Listing Date	29 December 2023

Indifra Limited IPO Details

IPO opening & closing date	21 December to 26 December 2023
Face value	Rs. 10 per share
Issue Price	Rs. 65 per share
Lot Size	2000  Shares
Price of 1 lot	Rs. 1,30,000
Total Issue Size	2,160,000 shares (aggregating up to Rs. 14.04 CR)
Fresh issue	2,160,000 shares (aggregating up to Rs.14.04 CR)
Listing at	NSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Kfin Technologies Limited

 

 

Indifra Limited IPO Lot Details

Application	Lot	Shares
Minimum Lot Investment (Retail)	1 Lot	2,000
Maximum Lot Investment (Retail)	1 Lot	2,000
Minimum Lot Investment (HNI)	2 Lot	4,000

 

Indifra Limited IPO Reservation

Retail Shares Offered	50%
Other Shares Offered	50%

 

Company Financial

In Q1 FY23, Indifra Limited reports increased total assets, revenue, and profit after tax. The net worth and reserve & surplus also show growth, while total borrowings have changed compared to the previous fiscal years.

(Amount in Lakhs)

Period	Jun 30  FY 23	Mar 31  FY 23	Mar 31  FY 22
Total Assets	630.24	312.46	420.10
Total Revenue	64.28	1,001.69	1,092.41
PAT	3.54	99.08	39.94
Net worth	533.25	169.70	70.62
Reserve & Surplus	20.25	168.70	69.62
Total Borrowings	-	38.26	50.61

Particulars of Revenue Segment-wise

For Q1 FY23, 90.02% of Revenue comes from the sale of goods and 9.98% from works contracts income.

( in % age)

Particulars	Jun 30  FY 23	Mar 31  FY 23	Mar 31  FY 22
Sale of Goods	90.02	17.84	15.68
Works Contracts Income	9.98	82.16	84.32
Total	100.00%	100.00%	100.00%

 

Service  Catagory-Wise Revenue Bifurcation 

In Q1 FY23, Indifra Limited's revenue came primarily from electrical appliance distribution (90.02%) and Pipeline/Infrastructure Management Services (9.98%), indicating a shift from previous fiscal years.
( % age) 

Particulars	Jun 30 FY 23	Mar 31  FY 23	Mar 31  FY 22
Pipeline and Infrastructure Management Service	9.98%	82.16%	84.32%
Distribution of electrical appliances.	90.02%	17.84%	15.68%
Total	100.00	100.00	100.00

 

Revenue By operations

 Indifra Limited's Revenue by Operations for the quarter ending June 30, FY23, is strong, with 97.71% from operations and 2.29% from other sources. This marks an improvement compared to previous fiscal years.                

(amount in Lakhs)

Particulars	Jun 30 FY 23	Mar 31  FY 23	Mar 31  FY 22
Revenue from operations	97.71%	99.94%	99.90%
Other Operating Income	2.29%	0.06%	0.10%
Total Revenue from operations	100.00%	100.00%	100.00%

 

 

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Funding investments for acquisitions.

• Meeting working capital requirements.

• Covering public issue expenses for general corporate purposes.

 

Promoters and Management of Indifra Limited IPO

1. Mr. Abhishek Sandeepkumar Agrawal

2. Sandeepkumar Vishwanath Agrawal

Pre-issue Promoter Shareholding	96%
Post-issue Promoter Shareholding	67.55%

Indifra Limited IPO Lead Managers

•  Beeline Capital Advisors Pvt Ltd

 

Peers of Indifra Limited IPO

Indifra Limited's IPO looks promising compared to RBM Infracon Limited, boasting a slightly higher P/E ratio and a higher basic EPS .

Name of the company	Face value (Rs. per share)	P/ E	EPS (Basic) (Rs.)
Indifra Limited	10	11.23	5.79
RBM Infracon Limited	10	11.01	5.13

 

Evaluation

The IPO is priced in the range of Rs 65  per share.

Evaluation of P/E Ratio

- Considering the FY23 EPS of Rs 5.79 from the last year, the resulting P/E ratio is 11.23x.

- Taking into account the weighted EPS of Rs 3.78 for the last three years, the P/E ratio amounts to 17.20x.

Consequently, the IPO Price range at a P/E of 11.23x. to 17.20x is considered very slightly overvalued.
 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

IPO's Strengths

Experienced Leadership: Led by seasoned Promoters, our management team brings extensive industry experience, driving growth and strategy implementation. We prioritize a motivated and skilled workforce for sustained competitiveness.

Efficient Structure:Our qualified management team ensures timely decisions, fostering a culture of innovation and teamwork. A motivated workforce is crucial for our competitive edge.

Strong Supplier Relationships: Personal connections with suppliers, backed by management expertise, secure uninterrupted supply chain management for our small to medium-sized organisation.

Customer Focus:Tailoring solutions to customer needs, we maintain long-term relationships, ensuring continuous business and an effective customer retention strategy.

Asset-Light Model:Our service-centric, asset-light model offers supplier selection advantages, saves time, increases efficiency, and ensures prompt deliveries, enhancing overall business agility.

 

 

 

IPO's Weaknesses

Client Compliance Risks: It's important to meet the standards set by our clients for their work orders. If they don't, they might have to pay compensation or lose business.

High Volume-Low Margin Challenges: Selling a lot of electrical appliances with small profit margins means  hey need steady sales growth. 

Customer Concentration Risks: Coampnies Revenue heavily relies on our top 10 customers, posing stability but introducing risks. 

Cash Flow Concerns:  Recent fiscal periods show negative cash flow from operating activities, raising concerns about its impact on  its business.

Litigation Risks:  Various outstanding litigation matters, including criminal complaints, regulatory issues, and taxation matters, pose risks to business, reputation, and operational results.

Intellectual Property Risks:  Dependency on an unregistered logo exposes the company to competitive risks

 

IPO GMP Today

The GMP of Indifra Limited IPO has not started yet.

 

Conclusion

In conclusion, Indifra Limited, established in 2009, has evolved into a dynamic player in infrastructure management, gas pipeline services, and electrical appliance distribution. With a diverse portfolio, the company has made significant strides in the pharmaceutical industry and has established itself as a key player in managing gas supply pipelines for prominent entities.

 

 

 

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.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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