SME IPO: Rachana Infrastructure Limited
Grey Market Trend News for Rachana Infrastructure IPO :
On 6 June 2022
Subject to Rates# : nil
GMP Rates : – nil
Past Trend details at the bottom
On 2 June 2022 @ 5.00 pm
NII (50%) 26,83,000 Sh : 1.82 T
RII (50%) 26,83,000 Sh : 0.60 T
Tot 53,66,000 Sh : 1.21 T
Rachana Infrastructure IPO Details
IPO Date May 20, 2022 to June 2, 2022
IPO Face Value Rs10 per share
IPO Price Rs.138 per share
IPO Lot Size 1000 Shares
Issue Size 5,650,000 shares of Rs10
(aggregating up to Rs77.97 Cr)
Fresh Issue 2,825,000 shares of Rs10
(aggregating up to Rs.38.99 Cr)
Offer for Sale 2,825,000 shares of Rs.10
(aggregating up to Rs38.99 Cr)
Issue Type Fixed Price Issue IPO
Listing At NSE SME
Retail Shares Offered 50% of the net offer
NII (HNI) Shares Offered 50% of the net offer
Net IPO size Rs. 74.06 Crore/ 53,66,000 Shares
Retail Quota : 50 % ( net 26,83,000 Shares)
Retail Min Application : 1000 Shares/ Rs. 138,000
Retail Max Application : 1000 Shares/ Rs. 138,000
Retail : 2683 Applications required for one time subscriptions.
IPO Timetable ( Tentative) for Rachana Infrastructure
IPO Opens on May 20, 2022
IPO Closes on June 02 , 2022
Basis of Allotment Date ?
Initiation of Refunds ?
Credit of Shares to Demat Account ?
IPO Listing Date ?
Rachana Infrastructure Business :
Rachana Infrastructure Limited is one of the mid size private sector company engaged in the business of Construction of Road projects on Bill of Quantities (BOQ) and EPC basis. In the very initial periods, the Company got the contracts from the Government (Zilla Panchayat) at a very small scale. In addition, it got sub contracts from the infrastructure Companies from Gujarat, Maharashtra and many other states. Over a period of time,Company got expertise in the traditional construction of Buildings, Road Construction, Irrigation, Hydro power Project and Mining. With time and experience, it started expanding its business in the other states of the India like Maharashtra, Madhya Pradesh, Jharkhand and Rajasthan.
It has successfullycompleted many projects in various departments of Government of India. Some of its clients are Public Works Department of Madhya Pradesh, Road and Building Department
of Gujarat State, Madhya Pradesh Road Development Corporation, Power Grid Corporation of India, Gujarat Minerals Development Corporation, Road Construction Department of Jharkhand, ONGC Petro-Additions Limited, Ahmedabad Municipal Corporation, and Ahmedabad Urban Development Corporation etc.
Over the years, it has acquired resources with vertical integration like we have our own stone mines and stone crushers for basic excavation of stone aggregate which is the core and basic material for all road infrastructure construction.
The business verticals of the company are
# Roads and Highways
# Hydro Power project
For more information about the business, Click www.rachanainfra.com
Promoters of Rachana Infrastructure IPO
Mr. Girishkumar Raval and Mrs. Bhaminiben Mehta
Rachana Infrastructure : Objects of the IPO
1. Repayment of Secured Loans.
2. Working capital requirement.
Registered office of Rachana Infrastructure Ltd
Rachana Infrastructure Limited
404, 405, 4th Floor,
Angel Complex, Nr. Income Tax Railway Crossing,
Nr. Oassis Hotel, Navrangpura, Ahmedabad – 380009
Company Secretary and Compliance Officer: Mr. Smit Shah
Lead Manager of Rachana Infrastructure h IPO
Interactive Financial Services ltd
Observations & Guidance by Paresh Gordhandas ( Research Analyst) :
SME IPO Financial & Analytical Ratios#
Earnings per Share 2019-20,Rs 11.35
Earnings per Share 2020-21 Rs 8.66
Earnings per Share 2021-22 9M Rs (?)
Return on Net Worth: 19-20 17.28 %
Return on Net Worth: 20-21: 11.63 %
Return on Net Worth: 21-22 7M : 17.38%
Book Value of the Share as on 31.12.21 Rs 77.39
Offer Price Rs. 138
IPO Peer Comparison:
HEC Infra Projects @ PE Multiple of 20.33
Akash Infra projects @ PE Multiple of 273.69
Observation by Paresh Gordhandas ( Research Analyst )
The company has reasonably good turnover and profitability and the IPO is reasonably priced. However the IPO size of Rs. 77.97 is relatively large for an SME IPO .Moreover, the listing gains generally for any SME IPO are more or less dependant on Grey market fancy.
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