Sonu Infratech SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 29 Apr 2022 – 05 May 2022
- Listing date
- 13 May 2022
- Face value
- ₹10 per share
- Issue price
- ₹36 per share
- Lot size
- 3,000 shares
- Total issue size
- ₹8.64 Cr
- Market cap at offer price
- ₹28.26 Cr
- Promoter holding
- 94.28% → 65.45% pre-issue → post-issue
- ISIN
- INE0JZA01018
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Swastika Investmart Ltd.
- Registered office
- Platinum 404, 4th Floor Park Colony, Opp.Joggers Park, 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 |
|---|---|---|---|
| Market maker | 1,20,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹36
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,08,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,16,000 |
| S-HNI (max) | 9 | 27,000 | ₹9,72,000 |
| B-HNI (min) | 10 | 30,000 | ₹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.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 2.57 | — |
| P/E (×) | 14.01 | — |
| Market cap | — | ₹28.26 Cr |
Key performance indicators
- Return on net worth
- 15.14%
- ROCE
- 9.70%
- Debt / equity
- 3.65
- PAT margin
- 3.45%
- NAV per share
- ₹16.95
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Sonu Infratech SME
Sonu Infratech Limited was originally formed as a partnership firm 'M/s Sonu Enterprises' in 2001 and was converted to a public limited company in 2017. The company is engaged in civil construction services for commercial and industrial projects, mechanical scaffolding services, plant maintenance at facilities like Reliance DTA, SEZ, and other major industrial sites, and repairs and maintenance services. The company maintains its own plant and machinery to provide comprehensive civil construction and infrastructure-related work. It has completed various contracts including defense segment work through Military Engineering Services (MES). The company generates revenue primarily through negotiated contracts and competitive bidding, with customers including medium to large infrastructure companies.
Company Analysis
from RHPSonu Infratech Limited is a civil construction and infrastructure services company operating primarily in Gujarat that provides services including piling, excavation, road preparation, land leveling, structural painting, building construction, mechanical scaffolding, and plant maintenance.
Sonu Infratech Limited was originally formed as a partnership firm 'M/s Sonu Enterprises' in 2001 and was converted to a public limited company in 2017. The company is engaged in civil construction services for commercial and industrial projects, mechanical scaffolding services, plant maintenance at facilities like Reliance DTA, SEZ, and other major industrial sites, and repairs and maintenance services. The company maintains its own plant and machinery to provide comprehensive civil construction and infrastructure-related work. It has completed various contracts including defense segment work through Military Engineering Services (MES). The company generates revenue primarily through negotiated contracts and competitive bidding, with customers including medium to large infrastructure companies.
Objects of the Issue
- To Meet Incremental Working Capital Requirements ₹ 624.00 Lakhs p.18
- General Corporate Purpose ₹ 200.00 Lakhs p.18
- To Meet Incremental Working Capital Requirements ₹624.00 Lakhs p.64
- General Corporate Purpose ₹200.00 Lakhs p.64
- To meet Public Issue Expenses ₹40.00 Lakhs p.64
Issue Structure
- Total Issue
- ₹ 864.00 Lakhs
- Fresh Issue
- ₹ 864.00 Lakhs (24,00,000 Equity Shares)
- Offer for Sale
- Nil
- Price Band
- ₹ 36 per Equity Share (Fixed Price)
- Lot Size
- Not specified in this part
- Face Value
- ₹ 10 per Equity Share
Business Model
The company secures contracts generally through one-to-one negotiation and competitive bidding. Pricing of services is determined based on type of construction, estimated duration, and equipment required, negotiated directly with clients. Services are generally provided on credit with customers settling accounts on a periodic basis. Revenue comes from civil construction services, mechanical job work, plant maintenance, and repairs and maintenance services.
Business Segments
SWOT Analysis
- • Established brand and image with multiple safety awards from major clients(p.98)
- • Experienced management team with two decades in civil construction and related services(p.99)
- • Proven track record of timely project execution without penalties(p.99)
- • Owned fleet of construction equipment enabling rapid mobilization(p.101)
- • Class C contract status enabling defense segment work(p.95)
- • Experienced management with 20+ years in construction(p.145)
- • Class C contract status enabling defense segment work(p.139)
- • Own plant and machinery fleet for comprehensive service delivery(p.139)
- • Multiple awards from major clients including Reliance Industries(p.140)
- • Significant work order book of Rs. 2,041.14 Lakh(p.205)
- • Revenue growth of 20.13% in FY 2019-20(p.210)
- • Diversified civil construction service offerings(p.212)
- • Consistent operating profit generation(p.229)
- • Positive and growing net worth(p.229)
- • Over 20-year operational history(p.219)
- • Heavy dependence on single major client representing 70-75% of turnover(p.67)
- • Limited geographic reach outside Jamnagar, Gujarat and nearby regions(p.101)
- • Significant working capital requirements to support business growth(p.101)
- • Net working capital projected to increase substantially by FY 2022-23(p.66)
- • High leverage with debt-to-equity ratio of 3.14(p.204)
- • Significant working capital dependency with current ratio declining to 1.11(p.204)
- • Reliance on unsecured loans from promoter group totaling Rs. 1,310.75 Lakh(p.181)
- • Limited geographical presence concentrated in Gujarat, Maharashtra, and UP(p.188)
- • Declining profitability margin from 3.43% in FY21 to 3.22% in Oct 2021(p.209)
- • Significant related party transactions including subcontracting to group entities(p.201)
- • Severe customer concentration(p.213)
- • Significant supplier concentration and related-party dependency(p.213)
- • High leverage ratios(p.214)
- • Potential conflict of interest with group companies in same business(p.227)
- • Government's massive investment in infrastructure through National Infrastructure Pipeline(p.83)
- • Rapid road construction expansion under Bharatmala Pariyojana(p.83)
- • Increasing government allocation to infrastructure and industrial construction sector(p.100)
- • Rapid urbanization driving infrastructure development(p.88)
- • Diversification into government and tender-based projects(p.100)
- • Infrastructure sector growth and government spending on highways and development(p.207)
- • Expansion into new geographies and project types beyond current focus areas(p.207)
- • Increasing adoption of in-house execution reducing subcontracting costs(p.210)
- • Defense and government contracting opportunities through Class C status(p.139)
- • Digital transformation and technology adoption in construction services(p.139)
- • Expansion into new geographic markets(p.243)
- • Diversification through related party transactions(p.227)
- • Industry vulnerability to government policy changes affecting input costs and duties(p.101)
- • Low entry barriers creating threat from new competitors(p.101)
- • Intense competition from regional, national and international players(p.111)
- • Dependence on growth in infrastructure industry(p.101)
- • COVID-19 pandemic impact on operations and project execution(p.198)
- • Heavy dependence on few major clients (Reliance Industries)(p.207)
- • Regulatory compliance burden across multiple jurisdictions(p.207)
- • Rising finance costs and interest rate risk on borrowings(p.211)
- • Supply chain disruptions affecting raw materials and labor availability(p.207)
- • Environmental compliance risks and potential uninsured losses(p.207)
- • Seasonality and weather-dependent operations(p.213)
- • Inflation impact on material and operating costs(p.212)
- • Competition from existing and potential competitors(p.213)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Ramji Shrinarayan Pandey | Promoter | 41.28% | 28.66% |
| Mr. Ketan Vallabhdas Modi | Promoter | 22.94% | 15.92% |
| Mr. Ramji Shrinarayan Pandey | Promoter | 41.28% | 28.66% |
| Mr. Ketan Vallabhdas Modi | Promoter | 22.94% | 15.92% |
| Mr. Ramji Shrinarayan Pandey | Promoter, Chairman and Managing Director | 41.28% | — |
| Mr. Ketan Vallabhdas Modi | Promoter, Whole-Time Director | 22.94% | — |
| Mrs. Seema Pandey | Promoter | — | — |
| Mr. Ramji Shrinarayan Pandey | Promoter | — | — |
| Mr. Ketan Vallabhdas Modi | Promoter | — | — |
| Mrs. Dipti Ketan Modi | Promoter | — | — |
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.