The buzz in the investment world is all about Indifra Limited’s latest move—a leap into the public market with its SME IPO. With an issue size of Rs 14.04 Cr, this IPO is set to hit the NSE Emerge platform, offering investors a fresh opportunity to get in on the ground floor.
From December 21 to December 26, 2023, the market will be abuzz as investors line up to grab a piece of Indifra at Rs 65 per share. I’ll walk you through the essential details, from subscription strategies to post-allotment expectations, ensuring you’ve got the inside scoop on this exciting financial event.
Indifra IPO Details
I’ve dug deep into the specifics of the Indifra Limited IPO, and here’s what I’ve found. With an Issue Size of Rs 14.04 Cr, this IPO is exclusively composed of a fresh issue with no offer-for-sale component. Notably, the entire issue is fresh, which signals that Indifra is focused on generating new funds rather than allowing existing shareholders to cash out, hinting at a strategy geared toward growth and investment.
Given the Issue Price of Rs 65 per share, with a face value of Rs 10 each, it’s a promising opportunity for investors looking to get in early on a company’s journey in the public markets. Particularly for small and medium-sized investors, the IPO’s position on the NSE Emerge platform is an indicator of accessibility to new market entrants. Here’s a quick snapshot:
|Rs 14.04 Cr
To participate, investors need to acquire a minimum of one lot, which equals 2,000 shares and may apply for multiple lots accordingly. This lot system is quite usual in SME IPOs and is crafted to balance the investment opportunities between smaller individual investors and institutional participants.
The subscription window, starting on December 21, 2023, and closing on December 26, 2023, offers a brief period for investors to make their decisions. Acting promptly within this timeframe is critical to ensure a position in this promising offering.
As an informed investor, it’s important to keep abreast of the live subscription rates, the Grey Market Premium (GMP) trends, and the allotment status, as these can give cues about the market’s perception of the IPO’s potential. These metrics are dynamic and can greatly influence investment decisions. Since the listing date is a pivotal moment for any IPO, I’m particularly keen on observing how Indifra shares will perform on the day they debut on NSE Emerge.
Indifra IPO Timeline
Keeping track of an IPO’s timeline is crucial for investors who are keen on participating. I’ve got all the dates you’ll need for the Indifra Limited IPO, from opening to listing.
The IPO window kicks off on December 21, 2023, and this is the first opportunity for investors to buy into the company. The call for investors will close shortly thereafter on December 26, 2023. It’s a narrow window, so acting promptly is essential if you’re planning to invest.
Once the subscription period concludes, the allotment process begins. The Basis of Allotment Date is set for December 27, 2023. It’s a pivotal moment when investors learn whether they’ve secured a slice of Indifra or not. Those who miss out on the allotment will see their funds refunded starting on December 28, 2023. Thankfully, you won’t have to wait long to find out if the shares have been credited to your Demat account. It’s slated for the same day, ensuring a seamless transition for successful bidders.
The culmination of this process heralds the actual listing of Indifra shares on the market. I’m pointing to December 29, 2023, when these shares begin trading publicly. It’s the date that can potentially shift the dynamics for investors, allowing them to finally see how the market values Indifra on the NSE Emerge platform.
|SME IPO Activity
|IPO Opens On
|21 Dec 2023
|IPO Closes On
|26 Dec 2023
|Basis of Allotment On
|27 Dec 2023
|28 Dec 2023
|Credit of Shares
|28 Dec 2023
|29 Dec 2023
Staying on top of these dates can make all the difference in an investment strategy. Remember, the market’s perception and the ensuing trading activity upon listing can offer deeper insights into the company’s perceived value post-IPO. It’s why I keep a keen eye on these timelines, as should any investor looking to get involved with Indifra Limited’s market debut.
Indifra IPO Lot Size
When it comes to IPO investments, understanding the lot size is crucial. Indifra Limited’s IPO comes with a market lot size of 2,000 shares. This means that as an investor, I can’t bid for less than 2,000 shares but can seek allocations in multiples of the lot size. Each share is priced at a fixed rate of Rs 65, making the investment threshold somewhat manageable for a range of investors.
The lot size choice by Indifra is quite strategic, considering the company’s focus on raising capital efficiently. Since this is an SME fixed price issue listed under the NSE SME platform, the minimum investment amount might seem steep for casual investors, but it also indicates a level of assurance for serious market players who understand the nuances of SME investments.
Let me delve into what this lot size means for potential returns. With the fixed issue price of Rs 65, a single lot purchase totals Rs 130,000. While this might appear substantial, it’s a common practice in SME IPOs to set a higher entry point to ensure that only investors with a certain risk appetite and market understanding participate. This helps stabilize the share price post-listing, as fewer speculative investors are involved.
Moreover, the sheer size of each lot makes the allocation process a bit more restrictive, which could potentially result in less volatility once the shares hit the market. Typically, I’d see this as a balanced move, enabling the company to attract a focused group of shareholders while providing ample opportunities for substantial capital injection.
The lot size directly impacts the post-listing liquidity of the shares. Given the higher share denomination and the substantial lot size, secondary market trading could be less frequent. However, it does cater to investors looking for long-term holdings in a company showing strong growth potential in its sector.
|Up to 1,404 Cr
|2,000 Shares per Lot
|Issue Price per Share
|Total Investment per Lot
In SME IPOs like Indifra’s, I’m always attentive to the fact that the market dynamics can be quite different. They’re often more suited for investors who perform thorough research and are in it for the prospect of significant long-term gains.
Indifra IPO Promoter Holding
When evaluating an IPO, it’s crucial to understand the role and stake of the promoters behind the company. For Indifra Limited’s IPO, Mr. Abhishek Sandeepkumar Agrawal and Sandeepkumar Vishwanath Agrawal HUF are the key figures carrying the promoter’s baton. Their involvement signifies a commitment to the company’s future success and operations.
The pre-issue shareholding for the promoters stood firm at 5,130,000 shares, reflecting a substantial stake in Indifra Limited’s outcomes and strategic direction. It demonstrates the promoters’ confidence in the company’s potential and their intent to maintain significant control and influence over the business decisions.
Investors often scrutinize promoter holding as it can be indicative of the management’s trust in the business model and growth plans. Post-IPO, the shareholding for promoters is projected to increase to 7,290,000 shares. This shift represents an augmentation of the promoters’ holdings, further cementing their role in stewardship.
Another intriguing aspect is the Market Maker allotment, involving 108,000 shares held by Spread X Securities. The presence of a market maker in the context of an SME IPO helps encourage trading activity and liquidity, aiming to mitigate drastic price fluctuations.
I’ve learned that the participation of promoters can significantly influence investor sentiment and stock performance. Therefore, keeping a close eye on their holdings before and after the IPO offers vital cues regarding the stability and future course of the company.
Identifying the threads of promoters’ holdings weaves a critical part of the narrative when delving into IPO investments. Their escalated stake post-listing shores up a sense of security and asserts a long-term vision for the company’s journey on the financial tapestry.
Indifra IPO Financial Information
Delving into the financials of Indifra Limited reveals a rather mixed trajectory. In an intriguing turn of events, the revenues for the company took a sharp 83% decline by the end of March 31, 2023, compared to the previous fiscal year. This stark drop outlines the volatility and the challenges faced in the fiscal period.
On the flip side, the Profit After Tax (PAT) skyrocketed by an astonishing 14,807%, underscoring a significant improvement in profitability – a metric vital for potential investors assessing the company’s operational efficiency and profitability. This leap indicates a potential restructuring or cost optimization strategy that could have been implemented.
Amidst these contrasting trends, it’s essential to highlight the net worth of Indifra Limited, which saw a significant boost, leaping from Rs 7,062 lakh to Rs 53,325 lakh within a year. The growth in net worth underscores the company’s fortified balance sheet position and can be a reassuring signal for investors looking for stable picks.
Here’s a breakdown of the key financials for a more detailed picture:
|30 Jun 2023
|31 Mar 2023
|31 Mar 2022
|31 Mar 2021
|Assets (Rs Lakh)
|Revenue (Rs Lakh)
|PAT (Rs Lakh)
|Net Worth (Rs Lakh)
Pairing these numbers with the salient fact that reserves and surplus observed an impressive swell – from Rs 6,962 lakh to Rs 16,870 lakh – provides insights into the company’s retained earnings and its capacity for future growth.
Indifra IPO Reservation
Embarking on the journey to become a public entity, Indifra Limited’s IPO reservation process is a critical phase where potential investors decide if they’ll dip their toes into the water. This process’s unique aspect is its discrete segments: retail investors, high net-worth individuals (HNIs), and qualified institutional buyers (QIBs). Through these categories, the company ensures a diversified investor base, which can lead to a more stable post-IPO market performance.
Each segment has a specific reservation percentage, with retail investors usually getting about 35% of the total issue size, offering an opportunity for small investors to be part of Indifra’s growth story. On the other hand, QIBs typically grab a larger piece of the pie – often around 50%, bringing in institutional stability and confidence to the other market participants. HNIs fill the gap with the remaining 15%, and their participation often reflects the market sentiment towards the IPO.
It’s important to note that these percentages are indicative and can vary depending on the company’s strategy and the recommendations of its financial advisors. In the case of Indifra, the exact details of the segmentation for the IPO reservation will be listed in its red herring prospectus—a document that’s invaluable for those looking to invest.
Given the contrasting trends in Indifra’s financials, with a significant slump in revenues but a monumental rise in profits, investors are encouraged to review the company’s fundamentals thoroughly before parking their funds. The company’s financial health also plays a vital role in reservation decisions. After all, a stronger balance sheet and impressive growth in reserves and surplus can be compelling reasons to invest despite any temporary downturns in revenue streams.
The reservation for an IPO like Indifra’s is more than just numbers – it’s about market sentiment, future potential, and the strength of the financials. Balancing these elements can be the key to deciding whether to participate in the IPO or observe from the sidelines.
About Indifra Limited
When I dive into the intricacies of a company, I focus on credible metrics and comparisons to understand its market positioning better. Indifra Limited stands out in its peer group with some impressive numbers. The company exhibits strong profitability with a Basic EPS (Earnings Per Share) of 579 and a Diluted EPS of the same. Further, a Net Asset Value (NAV) of Rs 992 per share showcases its substantial underlying value. These financial indicators are critical when deciding whether to participate in the IPO.
Investing requires assessing the company’s valuation. With a PE (Price to Earnings) ratio of 1123, it’s essential to consider whether this reflects market expectations for future growth or if there’s a possible overvaluation. My analysis won’t be complete without mentioning the Return on Net Worth (RoNW) of 8245, a testament to how well the management is using shareholders’ equity. The current market price at 140400 suggests that there’s significant investor interest.
To put these figures into perspective, here’s a comparison with a close competitor, RBM Infracon Limited:
|NAV per Share (Rs)
|Closing Price (Rs)
|RBM Infracon Limited
These clear contrasts offer insight into Indifra’s market performance relative to its peers, which plays a pivotal role in making informed investment decisions. Although my role is to provide an accurate analysis, the decision ultimately lies with you based on what aligns with your portfolio strategy.
Investors should keep in mind that performance metrics like EPS and RoNW are not static and should be reviewed in light of the latest financial statements for ongoing relevance. Additionally, the Closing Price needs careful observation as it often captures the market’s sentiment towards both the individual company and the sector at large.
Indifra IPO Review
When assessing the prospects of Indifra Limited’s IPO, one can’t overlook the details crucial to making an educated decision. This IPO’s foundation is a fixed price issue amassing to ₹14.04 crores, a significant infusion aimed at empowering the company’s growth mandate.
Initiating an in-depth look, Indifra Limited plans to issue 2.16 lakh shares. Each share holds a fixed price tag of ₹65, which seems like a calibrated move to attract a wide range of investors. The minimum lot size is set at 2,000 shares, demanding an investment of ₹130,000 from retail investors. In contrast, high net-worth individuals (HNIs) face a threshold of 2 lots, which equates to ₹260,000. The entry barriers are delineated, keeping in mind the capacity and interests of different investor segments.
My dive into the nitty-gritty of the IPO timeline revealed Indifra’s subscription window, which spans from December 21, 2023, to December 26, 2023. This forms a crucial period for potential investors to take action. The allotment is rumored to be finalized by December 27, 2023, giving investors just about a day’s time post-closure to pin their hopes on a favorable outcome.
The role of pivotal entities like Beeline Capital Advisors Pvt. Ltd., acting as the book-running lead manager, and Kfin Technologies Limited, serving as the registrar, can’t be downplayed. They ensure the smooth execution and registration of shares. Additionally, Spread X Securities Private Limited stands as the market maker, a testament to establishing a seamless link between demand and supply post-listing.
Peering into the particulars, the IPO’s evident intent is to leverage the stock exchange platform for raising capital facilitating current expansions and future endeavors. These financial maneuvers are, in essence, what set the tone for how a business scales within its industry landscape.
Indifra IPO Strengths and Weaknesses
As we’ve navigated through the intricacies of the Indifra Limited IPO, it’s clear that this offering presents both opportunities and challenges for potential investors. It’s crucial to weigh the company’s robust financial metrics against the contrasting revenue and profitability trends. The fixed price issue and the details surrounding the lot size and subscription window provide clarity for those looking to participate. I’ve dissected the financial health and market sentiment, which are key to making an informed decision. Remember, the strength of Indifra’s financials, when compared to a competitor like RBM Infracon Limited, can offer valuable insight. So before you decide to jump in, make sure you’ve done your homework and understand the market’s current pulse. Keep an eye on the closing price and latest financial statements—they’re the compass that’ll guide you through the IPO landscape.
How to Apply for Indifra IPO in Zerodha
To apply for an Indifra IPO through Zerodha, you can follow these steps:
- Log in to kite.zerodha.com or Console and select ‘IPO’ in the ‘Portfolio’ menu.
- Select the IPO you want to apply for from the list of open issues.
- Enter your UPI ID and click on ‘verify’. Make sure this is the UPI ID mapped to your personal bank account.
- Enter the bid price and quantity. The quantity should be a multiple of the lot size, and the price entered should be within the issue price range.
- Click on the undertaking tick box and submit the application.
- Accept the mandate on the UPI app.
Note that up to 3 bids can be placed in the IPO application, and each bid needs to be within the price range. The amount blocked would be the highest among the 3 bids. Zerodha does not charge any fees to apply for an IPO. You can also apply for an IPO without UPI by purchasing it through your bank’s net banking portal, called ASBA (Applications Supported by Blocked Amount). However, SEBI has made it mandatory for all IPOs to be supported by UPI 2.0.