IPO Update: Gujarat-Based Infra Developer Chavda Infra Files DRHP With NSE Emerge
Chavda Infra
Chavda Infra Limited, a civil construction company headquartered in Gujarat, has recently submitted draft papers to the NSE Emerge for its upcoming Initial Public Offering (IPO).
The IPO will involve the sale of 66.56 lakh equity shares, all with a face value of Rs 10. To facilitate the IPO process, Chavda Infra has appointed Beeline Capital Advisors Private Limited as the Bookrunning Lead Manager to the Issue.
According to a statement by Chavda Infra, the company’s revenue witnessed substantial growth, reaching Rs 16,188.57 lakh in FY2023 compared to Rs 10,982.24 lakh in the previous financial year.
This upward trend in revenue highlights the company’s ability to generate increased business and capitalize on market opportunities. Additionally, Chavda Infra reported a significant improvement in its operating profit (EBITDA), which rose to Rs 2,706.43 lakh in FY23 from Rs 1,563.77 lakh in the previous financial year. This growth in operating profit signifies the company’s enhanced operational efficiency and profitability.
Chavda Infra Limited reported a notable increase in net profit for FY23, reaching Rs 1,204.62 lakh compared to Rs 521.46 lakh in the previous year.
This surge in net profit signifies the company’s improved financial performance and profitability. The construction vertical played a significant role in driving the company’s revenue, accounting for 99% of its total revenue during FY2023, as mentioned in the company’s statement.
This demonstrates the company’s focus and success in its core business segment.
As per the draft papers, Chavda Infra plans to utilize Rs 27 crore of the funds raised from the IPO to fulfill its working capital requirements.
Working capital is crucial for companies operating in the construction industry as it helps cover short-term operational expenses, such as labor and material costs.
By allocating a portion of the IPO proceeds to working capital, Chavda Infra aims to ensure smooth operations and maintain its growth trajectory.
The remaining funds raised through the IPO will be allocated towards general corporate purposes. This can include various activities such as expanding the company’s operations, investing in infrastructure, enhancing technology and systems, strengthening the company’s balance sheet, and pursuing strategic initiatives that align with its long-term objectives.
Chavda Infra Limited has an impressive track record of completing over 100 projects with a total value of Rs 67,099.45 lakh.
These successful project completions highlight the company’s expertise and experience in the construction industry.
As of FY23, the company has a robust order book with 26 ongoing projects valued at approximately Rs 60,139 lakh. This indicates a strong pipeline of work and a promising outlook for future revenue generation.
Among the 26 ongoing projects, Chavda Infra is involved in 4 commercial projects, 4 institutional projects, and 18 residential projects, as stated in the company’s statement.
This diverse project portfolio across various sectors showcases the company’s ability to cater to different segments of the construction market. It also indicates a balanced approach in terms of revenue streams and mitigates concentration risk by operating in multiple sectors.
Having a substantial number of ongoing projects underscores Chavda Infra’s ability to secure and execute contracts successfully.
It also signifies the company’s continued ability to attract new projects and maintain a strong relationship with its clients.
With a healthy order book, Chavda Infra is well-positioned to generate revenue and sustain its growth momentum in the coming years.
Investors considering participating in Chavda Infra’s IPO should evaluate the company’s project portfolio, ongoing contracts, and the overall demand for construction services in the relevant sectors.
Assessing factors such as project execution capabilities, client relationships, and the competitive landscape can provide insights into the company’s growth potential and future prospects.
Conducting thorough due diligence and seeking expert advice are crucial steps in making informed investment decisions.
