Rachana Infrastructure SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 20 May 2022 – 02 Jun 2022
- Listing date
- 10 Jun 2022
- Face value
- ₹10 per share
- Issue price
- ₹135 per share
- Lot size
- 1,000 shares
- Total issue size
- ₹76.28 Cr
- Market cap at offer price
- ₹257 Cr
- Promoter holding
- 83.44% → 66.03% pre-issue → post-issue
- ISIN
- INE02OY01016
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Interactive Financial Services Ltd.
- Registered office
- 404, 405, 4th Floor, Angel Complex, Nr.Income Tax Railway Crossing, Nr.Oassis Hotel, Navrangpura, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 0 | — | — |
| Market maker | 2,84,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹135
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,35,000 |
| S-HNI (min) | 2 | 2,000 | ₹2,70,000 |
| S-HNI (max) | 7 | 7,000 | ₹9,45,000 |
| B-HNI (min) | 8 | 8,000 | ₹10,80,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 8.66 | — |
| P/E (×) | 15.59 | — |
| Market cap | — | ₹257 Cr |
Key performance indicators
- Return on net worth
- 11.63%
- Debt / equity
- 0.57
- NAV per share
- ₹74.45
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Rachana Infrastructure SME
Rachana Infrastructure Limited, incorporated in 2001, is a construction company primarily engaged in the business of constructing road projects on Bill of Quantities (BOQ) and Engineering Procurement Construction (EPC) basis. Initially receiving contracts from government entities (Zilla Panchayat) at small scales, the company has expanded to undertake sub-contracts from reputed infrastructure companies across Gujarat, Maharashtra, and other states. Over time, the company developed expertise in traditional building construction, road construction, irrigation projects, hydro power projects, and mining. The company has expanded its operations across multiple Indian states including Maharashtra, Madhya Pradesh, Jharkhand, and Rajasthan, building a reputation in the infrastructure sector.
Company Analysis
from RHPRachana Infrastructure Limited is a mid-sized Indian construction company engaged in road project construction on BOQ and EPC basis, spanning civil infrastructure across multiple states.
Rachana Infrastructure Limited, incorporated in 2001, is a construction company primarily engaged in the business of constructing road projects on Bill of Quantities (BOQ) and Engineering Procurement Construction (EPC) basis. Initially receiving contracts from government entities (Zilla Panchayat) at small scales, the company has expanded to undertake sub-contracts from reputed infrastructure companies across Gujarat, Maharashtra, and other states. Over time, the company developed expertise in traditional building construction, road construction, irrigation projects, hydro power projects, and mining. The company has expanded its operations across multiple Indian states including Maharashtra, Madhya Pradesh, Jharkhand, and Rajasthan, building a reputation in the infrastructure sector.
Objects of the Issue
- Repayment of secured Loans ₹750.00 lakhs p.59
- Working capital requirement ₹2,150.00 lakhs p.59
- General corporate purposes ₹938.50 lakhs p.59
- Repayment of secured Loans ₹750.00 lakhs p.64
- Working capital requirement ₹2150.00 lakhs p.64
- General corporate purposes ₹938.50 lakhs p.66
- General corporate purposes p.59
Issue Structure
- Total Issue
- ₹7,797.00 lakhs
- Fresh Issue
- ₹3,898.50 lakhs (28,25,000 equity shares)
- Offer for Sale
- ₹3,898.50 lakhs (28,25,000 equity shares)
- Price Band
- ₹138 per equity share
- Lot Size
- 1,000 equity shares (minimum)
- Face Value
- ₹10 per equity share
Business Model
The company earns revenue through contract-based construction of road projects on BOQ (Bill of Quantities) and EPC (Engineering Procurement Construction) basis. As of December 31, 2021, the company's order book stood at ₹23,864.99 lakhs. The company maintains working capital requirements through equipment, inventory, and work-in-progress financing, while also providing performance bank guarantees and managing retention money held by clients post-project completion.
Business Segments
SWOT Analysis
- • Established infrastructure construction expertise across multiple states(p.12)
- • Significant order book demonstrating revenue pipeline(p.20)
- • Experienced promoter leadership with long track record(p.23)
- • Positive financial trajectory with growing net worth(p.14)
- • Over two decades of construction experience in roads, highways, and infrastructure(p.81)
- • Leading road-focused BOQ and EPC contractor with strong technical execution capabilities(p.87)
- • Experienced management team with proven infrastructure execution expertise(p.87)
- • Vertically integrated operations including own stone mines and crushing facilities(p.81)
- • Robust order book demonstrating future revenue visibility(p.87)
- • Presence across multiple states in India reducing geographic concentration(p.81)
- • High working capital requirements due to business model(p.18)
- • Historical non-compliance with equity issuance regulations(p.19)
- • Significant contingent liabilities and disputed tax assessments(p.20)
- • Dependence on promoters for operational success(p.24)
- • Unsecured loans from directors repayable on demand(p.22)
- • Restrictive covenants on bank borrowings limiting strategic flexibility(p.20)
- • High debt levels requiring significant loan repayment from IPO proceeds(p.64)
- • Substantial working capital requirement indicating potential liquidity stress(p.64)
- • High payment receivables (90-day average) creating cash flow timing challenges(p.64)
- • Limited historical dividends or capital return to shareholders(p.126)
- • No formal dividend policy in place(p.126)
- • India's massive highway construction expansion program(p.12)
- • Growing private sector participation in infrastructure development(p.12)
- • Expansion into new geographies and project types(p.12)
- • Large scale infrastructure pipeline in India(p.12)
- • Massive government investment in highway infrastructure nationwide(p.76)
- • Planned expansion of national highway network with record construction pace(p.76)
- • Growth in HAM, BOT, EPC and PPP mode projects offering higher-margin contracts(p.87)
- • Expansion into new states and geographies to reduce concentration risk(p.88)
- • Emerging demand for specialized road infrastructure projects (expressways, economic corridors)(p.76)
- • Government incentives and subsidies to attract private sector investment(p.75)
- • Intense competition from domestic and foreign companies(p.23)
- • Regulatory changes and policy uncertainty(p.26)
- • Project delays, modifications and cancellations beyond company control(p.20)
- • COVID-19 pandemic impacts on construction operations(p.26)
- • India's economic growth dependency and external shocks(p.26)
- • Labor disputes and wage inflation risks(p.24)
- • Natural disasters and uninsurable losses(p.23)
- • Regulatory and environmental compliance costs for road and mining operations(p.104)
- • Dependency on government tender awards for majority of business(p.64)
- • Cyclical nature of infrastructure projects dependent on government budget allocations(p.77)
- • Input price volatility for bitumen, steel, cement and fuel costs(p.88)
- • Monsoon and weather-related disruptions affecting project execution timelines(p.65)
- • Competition from larger national and international infrastructure companies(p.87)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Girishkumar Raval | Promoter | 41.53% | 31.22% |
| Bhaminiben Mehta | Promoter | 9.71% | 8.23% |
| Girishkumar Ochchhavlal Raval | Promoter and Managing Director | 41.53% | — |
| Bhaminiben Baldevprasad Mehta | Promoter and Director | 9.71% | — |
| Girishbhai Ochhacbhai Raval | Promoter | 39.73% | — |
| Bhaminiben Mehta | Promoter Group | 6.67% | — |
| Brijesh Rawal | Promoter Group | 7.87% | — |
| Jaydeep Raval | Promoter Group | 6.69% | — |
| Girishbhai Raval | Promoter/Selling Shareholder | — | — |
| Rajendrakumar Patel | Promoter/Selling Shareholder | — | — |
| Jitendra Vyas | Promoter/Selling Shareholder | — | — |
| Suresh Patel | Promoter/Selling Shareholder | — | — |
| Nitinkumar Raval | Promoter/Selling Shareholder | — | — |
| Sushmaben Patel | Promoter/Selling Shareholder | — | — |
| Sanjay Raval | Promoter/Selling Shareholder | — | — |
| Alpaben Dave | Promoter/Selling Shareholder | — | — |
| Radhikahen Patel | Promoter/Selling Shareholder | — | — |
| Ramesh Patel | Promoter/Selling Shareholder | — | — |
| Vishnubhai Patel | Promoter/Selling Shareholder | — | — |
| Hiren Dave | Promoter/Selling Shareholder | — | — |
| Sayyadunnisa Kovadiya | Promoter/Selling Shareholder | — | — |
| Nitesh Patel | Promoter/Selling Shareholder | — | — |
| Purvesh Patel | Promoter/Selling Shareholder | — | — |
| Brijesh Raval | Promoter/Selling Shareholder | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.