Sonu Infratech IPO Analysis Details

Sonu Infratech Limited is a company engaged in the business operation of Civil Construction Services. The company’s major source of revenue is derived from the business segments of Civil Construction, which includes the construction of the Buildings, Mechanical Scaffolding, Maintenance, and Repairs of the plants. The company in the maintenance segment provides services such as piling and excavation. Recently, Sonu Infratech also started a new business vertical of road preparation, land leveling, and structural painting. The company has been in years of business in building construction for commercial and industrial projects. In this article, we take a closer look at the Sonu Infratech IPO Details and its possible future prospects.

The company holds a tender of the Plant maintenance at various Reliance Plants. It carries out Plant maintenance at Reliance DTA, Reliance SEZ, Reliance MTF, Reliance J3 fields of C2 Complex, PCG SEZ, PCG DTA, and Rubber Plants. It also holds a long-term tender with the Nayara Maintenance in the form of jobs such as plumbing, electrification, and the cleaning of vessels. Sonu Infratech Limited also owns its plants. The company carries out the business operation of these plants, the machinery present in the plants, and vehicles owned by the company for all types of networks and support in the form of logistics and distribution and network set up of civil construction and infrastructure projects. Sonu Infratech Limited majorly operates on the contract-based model, and it has been classified as a class “C” contract company. It allows the company to bid on any military segment construction and maintenance and repair work in the country. To backup this advantage, the company has completed various contracts awarded to the company regarding Military Engineering Services.

Some of the Competitive Strengths of the company are as follows:

  • Sonu Infratech Limited has established itself as a reputed brand with a solid and pure image.
  • The company holds Domain expertise along with technical excellence.
  • Sonu Infratech Limited has an impeccable track record that has helped the company bag multiple orders.
  • The company has also got the advantage of operating in the Military Engineering Services.

Along with these advantages, there are some loopholes and challenges to the company, which are as follows:

  • Based on its improved financial data in recent years, the IPO issue offer of the company is fully priced. 
  • The company operates in a highly growing, competitive, and fragmented segment. It experiences competition from many firms that are organized and a big scale firm as L&T and other growing small-cap firms.
  • The company holds a cash surplus that is good unless it accounts for the parking of funds from a long-term perspective.

OBJECTS OF THE IPO ISSUE:

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

SONU INFRATECH IPO DETAILS:

Sonu Infratech Limited recently got approval from SEBI to launch its IPO in the market. The company stated that it would raise around Rs from the funds raised by the issuance of the fresh equity of 2,400,000 equity shares of the company in the IPO offer. 8.64 crores. The company also stated that it would utilize around Rs. 6.24 crores for the needs for incremental working capital of the company. It also stated that it would utilize another Rs. 2.0 crores for corporate purposes. The IPO offer of the company is a fixed price issue type IPO that has been priced at Rs. 36 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 30.57% of the company’s post-issue fully paid-up equity capital base. 

Sonu Infratech Limited also stated that after issuing an initial equity capital at par with the company, further equity was issued at Rs. 30 per equity share. The average cost of acquiring the stake of the company’s promoters is a face value of Rs. 10 per equity share. Post-IPO, the company’s current fully paid-up equity capital base will enhance to Rs. 7.85 crores. Based on the valuations of the IPO, the company aims to achieve a market capitalization of Rs. 28.26 crores. Check Day by Day IPO Subscription Details (Live Status)

Sonu Infratech IPO Open DateApril 29, 2022
Sonu Infratech IPO Close DateMay 5, 2022
Issue TypeFixed Price Issue type IPO
Sonu Infratech IPO Face ValueRs. 10 per equity share
Sonu Infratech IPO PriceRs. 36 per equity share
Sonu Infratech IPO Lot SizeOne lot of 3000 equity shares of the company
Minimum Order Quantity3000 equity shares of the company
Minimum Order PriceRs. 108,000
Maximum Order Quantity3000 equity shares of the company
Maximum Order PriceRs. 108,000
Issue Size2,400,000 equity shares of the company aggregate to a sum of Rs. 8.64 Crores
Fresh Issue2,400,000 equity shares of the company aggregate to a sum of Rs. 8.64 Crores
Listing AtNSE SME
Retail Shares Offered50% of the net offer
NII (HNI) Shares Offered50% of the net offer
Company PromotersMr. Ramji Shrinarayan Pandey Mr. Ketan Vallabhdas Modi
Basis of AllotmentMay 10, 2022
Initiation of RefundsMay 11, 2022
The Credit of Shares to DematMay 12, 2022
Sonu Infratech IPO Listing DateMay 17, 2022

FINANCIAL TRENDS:

ParticularsFor the year ending with the amount as in Rs in Lakhs
31 Oct 2131 Mar 2131 Mar 2031 Mar 19
Total Assets5,503.074,319.182,902.962,696.21
Total Revenue3,239.504,076.694,114.073,412.77
Profit After Tax104.27139.8066.0164.47
   Earnings Per Share (Rs)2.571.21111.79
   CEPS (Rs)7.035.9518.14
   DPS (Rs)0.000.000.00
   Book NAV/Share (Rs)16.9514.3817.84
   Tax Rate (%)27.4926.015.67
   Core EBITDA Margin (%)13.9811.3622.97
   EBIT Margin (%)8.605.4657.51
   Pre -Tax Margin (%)4.762.18118.58
   PAT Margin (%)3.451.61114.22
   Cash Profit Margin (%)9.467.9119.50
   ROA (%)3.872.3664.07
   ROE (%)16.388.7986.26
   ROCE (%)11.4210.2211.69
   Asset Turnover (x)1.121.47-23.41
   Sales/Fixed Asset (x)2.544.18-39.27
   Working Capital/Sales (x)11.688.3739.45
   Fixed Capital/Sales (x)0.390.2464.67
   Receivable days86.5885.421.36
   Inventory Days69.8129.60135.86
   Payable days101.53165.00-38.47
   EV/Net Sales (x)0.780.5639.48
   EV/Core EBITDA (x)5.344.7612.33
   EV/EBIT (x)9.0710.24-11.45
   EV/CE (x)0.730.79-7.45
   Net Sales Growth (%)-1.1420.13-105.66
   Core EBITDA Growth (%)22.76100.94-77.45
   EBIT Growth (%)55.7146.2720.40
   PAT Growth (%)111.792.394579.77
   EPS Growth (%)111.792.394579.77
   Total Debt/Equity (x)2.872.2328.51
   Current Ratio (x)1.161.44-19.49
   Quick Ratio (x)0.671.01-33.18
   Interest Cover (x)2.241.6634.60
Particulars (in Lakhs)7 M FY22March 21March 20March 19
Sales3,2294,0514,0983,411
Consumption of Material Consumed1,5941,776972730
Changes in Inventories-838-590-295-55
Employee Benefits Expense1,3951,3851,7261,395
Other Expenses6019161,2291,103
Operating Profit477564466238
OPM %14.77%13.92%11.37%6.98%
Other Income1026162
Finance Cost11815413568
Depreciation22524325887
Profit before tax1451938985.00
Total Tax Exps40532321
Net Profit1041406664
NPM %3.22%3.46%1.61%1.88%
No. of shares78.5078.5078.5078.50
EPS1.912.571.211.18

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VALUATIONS OF THE COMPANY:

  • Average EPS = Rs. 1.88 
  • Average RoNW = 11.87%
  • P/BV = 2.12 
  • NAV = Rs. 16.95 
  • Post-IPO NAV = Rs. 23.59
  • Asking P/E = 15.79

COMPARISON WITH PEERS:

Name of the CompanySales as in CroresPAT as in CroresEPSPERoCEMarket cap as in CroresReturns 3YSales Growth of last 3Years
Sonu Infratech Limited6422.5514.035.09%2889.32%
RPP Infra Projects Limited690216.558.2611.40%169-55%18.76%
Shashijit Infraprojects Limited270.06-0.12-2571.88%23-24%2.40%

SONU INFRATECH PROMOTERS: 

The promoters of the company are as follows:

  • Mr. Ramji Shrinarayan Pandey 
  • Mr. Ketan Vallabhdas Modi
Pre-Issue Share Holding94.28%
Post Issue Share Holding65.45%

Also Read : List of Upcoming SME IPO’s in India.

COMPANY CONTACT INFORMATION:

Sonu Infratech Limited
Platinum 404,
4th Floor Park Colony,
Opp. Joggers Park Jamnagar -361008,
Phone: 0288 2555089
Email: info@sonuinfratech.com
Website: http://www.sonuinfratech.com/index.html

SONU INFRATECH IPO REGISTRAR:

Skyline Financial Services Private Ltd
Phone: 02228511022
Email: compliences@skylinerta.com
Website: https://www.skylinerta.com/

SONU INFRATECH IPO LEAD MANAGER(S):

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