Readymix Construction IPO: GMP, Date, Price, & Details

Readymix Construction IPO-Complete Overview

Readymix Construction IPO under the SME IPO category is a book-build issue of Rs.37.66 Cr (30.62 lac Shares) by Readymix Construction Machinery Limited, which was incorporated in 2012. The company is a diversified manufacturer and supplier in the construction equipment area.

Architectural and engineering solutions range from dry mix mortar plants, concrete plant supports, silos, and custom projects. Turnkey engineering solutions for plant machinery and equipment include concept development, design, fabrication, testing, and installation, with repair and maintenance for after-sales services.

Besides, business consultancy services assist with design, engineering, technology solutions, installation of equipment, and recipe consultancy in the optimization of performance, reduction of costs, and increase in efficiency.

Product Portfolio: The product portfolio comprises various plant & machinery. 

1. Dry Mix Mortar Plant: To produce dry mixed mortar for construction applications such as masonry, plastering, and tile fixing, increasing strength and durability.

2. Support Equipment for Readymix Concrete Plant: Provide support for concrete plants with equipment that includes aggregate bins, storage silos, batching units, mixers, and conveyors which are suitable for use in large construction projects.

3. High Capacity Silos: Provide high-capacity silos for the storage of bulk materials like gypsum, cement, and lime, ensuring uninterrupted supplies and avoiding delays to project work on site.

4. Artificial Sand Plant: Supplies artificial sand plants that wash sand to remove impurities to produce quality sand suitable for use in construction and industries.

5. Wall Putty Plant: Wall putty is a premixed blend of cement, fillers with polymers, and additives that qualifies for use in achieving smooth finishes and crack filling.

6. Service & Consultancy: Provides business consultancy services.

 

 

Readymix Construction IPO Overview

This Readymix Construction IPO date is 06 February 2025, and its ‘initial public offering’ will end on 10 February 2025.    

This Rs.37.66 crore new SME IPO comprises a totally fresh issue of 30.62 lac Shares.

This upcoming IPO date is on 06 Feb 2025. The Readymix Construction IPO Price is Rs.121 to Rs.123 for each Share. 

The expected IPO listing date is 13 Feb 2025, and the listing at NSE and SME.

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Company Financial

(Amount in Cr)

 

Cash Flows

The cash flows for various activities are mentioned below:

(Amount in lac)

 

Product-wise Revenue Breakdown 

(Amount in lac)

 

Industry-wise Revenue Breakdown 

(Amount in lac)

 

State-wise Revenue Breakdown 

(Amount in lac)

(Source: RHP)

 

The Objective of The Issue

• Full or partial repayment and/or prepayment of the company's borrowed funds.

• To fulfill the need for working capital.

• General corporate purposes.

 

Peers of Readymix Construction Ltd.

There are no listed companies in India engaged in the same business of comparable size.

Evaluation

The IPO price is Rs.121 to Rs.123 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.11.76 from the last year, the resulting P/E ratio is 10.46x.

Considering the weighted EPS of Rs.7.33 for the last three years, the P/E ratio is 16.78x.

IPO's Strengths

• Have a varied range of Products.

• This immense range can cater to some of the very selected Industries.

• A dedicated after-sales network exists.

• Good customer relations spread over several geographical locations.

• Promoters and management with long experience and a supporting design and development team.

 

IPO’s Weaknesses

• Dependence on Key Suppliers - The company's acquisition of raw materials hinges on several suppliers located within a specific region. Any disturbances in these suppliers' supply chains will have dire consequences on the operations of the business.

• Regulatory and Compliance Risks - The company must comply with various safety, health, environmental, and labor laws. Any changes in regulations or the failure to comply could lead to some legal trouble and financial penalties.

• Economic and Political Instability - The company’s profitability and growth potential tend to be influenced by external factors and the overall economic condition, political factors, inflation and deflation, and even varying interest rates or equity prices at any given point in time

• Technology and Innovation Risks - The industry in which this company seeks to thrive is characterized by rapid change in technology. A failure to regularly renew its products and services to meet market demand can cost the company in terms of competitiveness.

 

 

Readymix Construction IPO GMP 

Readymix Construction IPO GMP is Rs.0 as of 03 Feb 2025.

IPO Timetable (Tentative)

The IPO date is February 06, with allotment on February 11, refund initiation on February 12, and listing on 13 February 2025.

Readymix Construction IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 30,62,000 Shares (Rs.37.66 Cr).

 

Readymix Construction IPO Lot Details 

The Readymix Construction Machinery Limited IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1000 Shares) amounting to Rs.1,23,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2000 Shares) amounting to Rs.2,46,000.

 

IPO Reservation (% of Net Issue)

 

Promoters And Management of Readymix Construction Ltd.

• Anand Suresh Watve

• Atul Jagannath Kulkarni

• Prashant Balasaheb

• Shubhangi Rohit Deo.

 

IPO Lead Managers

Hem Securities Limited. 

Dividend Policy

The company has not declared a dividend in the last three years.

Conclusion

The Readymix Construction IPO is available at the price of Rs.121-Rs.123. The company has a sound position in the construction equipment market, but with expansion comes the possibility of incurring heavy supplier relationships. The company has the means and the capability of growth in the coming years although revenue and profits were irregular. Before investing, consider factors that capitalize on the risks and opportunities.

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. 

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