Rachana Infrastructure IPO Analysis Details

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Rachana Infrastructure Limited is a company engaged in the infrastructure segment. The company offers services of infrastructure and civil construction. Rachana Infrastructure is a small-cap private sector company. The major engagement of Rachana Infrastructure is the construction of roads and highways, hydropower project, irrigation and mining & pipeline. In this article, we take a closer look at the Rachana Infrastructure IPO Details and its possible future prospects.

Rachana Infrastructure Limited is currently on the verge of growth. The company is aggressively expanding their business in Maharashtra, Jharkhand, Madhya Pradesh and Rajasthan. The company has a PAN India Client base. Rachana Infrastructure Limited has completed many road projects. It includes MPRDC- ADB Loan IV, C.C. Road Construction for MP PWD, OPAL Petrochemical Refinery Road and Vadodara-Mumbai 6 Lane Highway.

The company has an in-house integrated system. It also holds machinery for all stages of mining. Rachana Infrastructure also holds types of machinery for Crushing and Finished Production. Rachana Infrastructure has also completed projects for the Government of India.

The Marquee clients of the company are:

Public Works Department of Madhya PradeshMadhya Pradesh Road Development CorporationPower Grid Corporation of India
Road and Building Department of Gujarat StateGujarat Minerals Development CorporationRoad Construction Department of Jharkhand
Ahmedabad Municipal CorporationONGC Petro-Additions LimitedAhmedabad Urban Development Corporation
Larsen & ToubroPublic Works Department of Maharashtra 

Some of the competitive strengths of the company are as follows:

  • Rachana Infrastructure is a focused BOQ and EPC Road contractor firm.
  • Excellent Management with an integrated in-house project team.
  • Track record of strong execution capacity.
  • Robust Order Book is leading to visible growth.

The negative drivers are as follows:

  • The company operates in a highly fragmented and competitive segment. 
  • The financial matrix of Rachana Infrastructure is not solid.
  • The asking P.E. of the IPO makes the offer highly overpriced.

OBJECTS OF THE IPO ISSUE:

  • Prepayment of all the company’s loans is availed on a consolidated basis. 
  • To meet corporate targets. 
  • To fund the working capital requirement.  

RACHANA INFRASTRUCTURE LIMITED IPO DETAILS:

Rachana Infrastructure Limited recently got approval from SEBI. The company is set to launch its IPO in the market. The company stated that it would raise around Rs. 77.97 crores from the IPO. It is a mix of an OFS and an issue of fresh equity of the company. The IPO offer is half OFS and half an Issue of Fresh equity. Rachana Infrastructure Limited’s IPO is of 5,650,000 equity shares of the company. The OFS offer is of 2,825,000 equity shares of the company. The issue of fresh equity is of another 2,825,000 equity shares of the company.

The company also stated that it would utilize around Rs. 21.50 crores for the working capital of the company. It also stated that it would utilize another Rs. 9.39 crores for corporate purposes. At the same time, Rs. 7.50 crores will be used for the repayment of loans. The IPO offer of the company is a fixed price issue type IPO that has been priced at Rs. 138 per equity share. Post allotment, the company’s shares will be listed on the NSE SME Emerge platform. The company also stated that the issue constitutes 30.37% of the company’s post-issue fully paid-up equity capital base. 

Post-IPO, the company’s current fully paid-up equity capital base will enhance to Rs. 18.61 crores. Based on the valuations of the IPO, the company aims to achieve a market capitalization of Rs. 256.75 crores. Check Day by Day IPO Subscription Details (Live Status)

Sonu Infratech IPO Open DateMay 20, 2022
Sonu Infratech IPO Close DateMay 25, 2022
Issue TypeFixed Price Issue type IPO
Sonu Infratech IPO Face ValueRs. 10 per equity share
Sonu Infratech IPO PriceRs. 138 per equity share
Sonu Infratech IPO Lot SizeOne lot of 1000 equity shares of the company
Minimum Order Quantity1000 equity shares of the company
Minimum Order PriceRs. 138,000
Maximum Order Quantity1000 equity shares of the company
Maximum Order PriceRs. 138,000
Issue Size5,650,000 equity shares of the company aggregate to a sum of Rs. 77.97 Crores
Fresh Issue2,825,000 equity shares of the company aggregate to a sum of Rs. 38.99 Crores
Offer for Sale2,825,000 equity shares of the company aggregate to a sum of Rs. 38.99 Crores
Listing AtNSE SME
Retail Shares Offered50% of the net offer
NII (HNI) Shares Offered50% of the net offer
Company PromotersMr. Girishkumar Raval Mrs. Bhaminiben Mehta
Basis of Allotment 
Initiation of Refunds 
The Credit of Shares to Demat 
Sonu Infratech IPO Listing Date 

FINANCIAL TRENDS OF RACHANA INFRASTRUCTURE IPO:

ParticularsFor the year ending with the amount as in Rs. in Lakhs
31 December 2131 March 2131 March 2031 March 19
Total Assets8,784.508,043.0710,618.217,981.82
Total Revenue4,171.0710,705.6715,840.5511,393.32
Profit After Tax139.85455.31597.13466.45
   Earnings Per Share (Rs)8.6611.35-23.75
   CEPS (Rs)4.346.19-29.99
   DPS (Rs)0.000.000.00
   Book NAV/Share (Rs)74.4565.6813.35
   Tax Rate (%)14.6327.12-46.05
   Core EBITDA Margin (%)9.048.842.25
   EBIT Margin (%)9.988.9911.09
   Pre-Tax Margin (%)5.145.31-3.18
   PAT Margin (%)4.393.8713.41
   Cash Profit Margin (%)6.596.334.13
   ROA (%)4.976.51-23.72
   ROE (%)12.3518.96-34.84
   ROCE (%)15.6821.19-25.99
   Asset Turnover (x)1.131.68-32.74
   Sales/Fixed Asset (x)2.783.77-26.34
   Working Capital/Sales (x)5.979.87-39.55
   Fixed Capital/Sales (x)0.360.2735.77
   Receivable days117.2079.5847.27
   Inventory Days10.855.5794.70
   Payable days0.00-3849.63100.00
   EV/Net Sales (x)0.290.2420.72
   EV/Core EBITDA (x)2.382.1013.40
   EV/EBIT (x)2.912.688.67
   EV/CE (x)0.380.358.14
   Net Sales Growth (%)-32.7737.71-186.89
   Core EBITDA Growth (%)-28.433.11-1014.06
   EBIT Growth (%)-25.319.65-362.37
   PAT Growth (%)-23.7528.02-184.77
   EPS Growth (%)-23.7528.02-184.77
   Total Debt/Equity (x)0.650.95-31.73
   Current Ratio (x)1.671.3028.60
   Quick Ratio (x)1.551.2424.49
   Interest Cover (x)2.062.44-15.63

Also Check: List of Mainboard IPO’s in India.

COMPARISON WITH PEERS OF RACHANA INFRASTRUCTURE IPO:

Name of the CompanySales as in CroresPAT as in CroresEPSPERoCEMarket cap as in CroresReturns 3YSales Growth of last 3Years
Rachana Infrastructure LimitedRs. 41 croresRs. 1.4 crores2.8947.7511.63 %256– 186.8 %
Sonu Infratech LimitedRs. 64 croresRs. 2 crores2.5514.035.09 %2889.32%
RPP Infra Projects LimitedRs.690 croresRs. 21 crores6.558.2611.40 %169-55%18.76%
Shashijit Infraprojects LimitedRs. 27 croresRs. 0.06 crores-0.12-2571.88 %23-24%2.40%

PROMOTERS OF THE COMPANY:

The promoters of the company are as follows:

  • Mr. Girishkumar Raval
  • Mrs. Bhaminiben Mehta
Pre-Issue Share Holding83.44%
Post Issue Share Holding

RACHANA INFRASTRUCTURE IPO CONTACT DETAILS:

Rachana Infrastructure Limited
404, 405, 4th Floor, Angel Complex,
Nr. Income Tax Railway Crossing,
Nr. Oassis Hotel, Navrangpura,
Ahmedabad – 380009
Phone: 079 – 26560327
Email: info@rachanainfra.com
Website: www.rachanainfra.com

RACHANA INFRASTRUCTURE OFFER REGISTRAR:

Bigshare Services Private Limited
1st Floor, Bharat Tin Works Building,
Makwana Road, Marol,
Andheri East, Mumbai – 400 059,
Maharashtra
Phone: +91 22 6263 8200
Fax. No.: +91 22 6263 8280
Email: ipo@bigshareonline.com
Website: www.bigshareonline.com

RACHANA INFRASTRUCTURE IPO LEAD MANAGERS:

· Interactive Financial Services Ltd

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2 COMMENTS

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