Suntech Infra Solutions SME : Check IPO Date, Live Subscription and Key Details
Suntech Infra Solutions is a business-to-business (B2B) construction company providing civil construction services and construction equipment rentals. Their civil construction services include Civil Foundation Works (such as piling and foundation work), Civil Structural Works, Earthworks, and construction of Bridges and Flyovers, and Industrial and Commercial Structures. They serve both public and private sector clients across various industries, including Power, Oil & Gas, Steel, Cement, Renewable Energy, Refineries, Petrochemical Plants, Fertilizer Plants, and Process Plants.
Min Investment
₹137600
Price Range
₹81.00-86.00
Issue Size
₹42.16 Cr
IPO Type
NSE SME
Key Metrics
Check Live GMP
Face Value
₹10
EPS
4.77
P/E Ratio
18.01
RoNW
23.97%
ROE
28.5%
Debt to Equity
1.46
Timeline
IPO Opens
25 Jun
IPO Closes
27 Jun
Allotment
30 Jun
Listing
2 Jul
IPO Objectives
- Funding working capital requirements of the company.
- Funding of capital expenditure requirements of the company towards purchase of Construction Equipments for civil construction business.
- General corporate purposes.
Strengths
- Established track record for timely project execution with a focus on quality, demonstrated by completed projects like Bharat Mandapam and IOCL Refineries.
- Strong order book with ongoing projects worth approximately ₹186.37 crore and an equipment rental order book of about ₹10.93 crore (as of July 31, 2024), providing revenue visibility.
- Experienced Promoter and management team with extensive knowledge in the civil construction industry.
- Own fleet of modern construction equipment, including Hydraulic Rotary Piling Rigs, Cranes, and Boom Placers, which enhances project execution capabilities, reduces reliance on third-party rentals, and provides an additional revenue stream.
- Long-standing relationships with customers in diversified sectors like Power, Oil & Gas, Steel, Cement, and Renewable Energy, ensuring repeat business and stable demand.
Weaknesses
- Working capital-intensive business, characterized by significant upfront and ongoing costs for site setup, raw materials, and consumables, which can strain cash flow and liquidity (working capital days increased from 36.6 days to 76.7 days).
- High customer concentration, with the top 10 clients contributing over 80% of the revenue in recent years, making the business vulnerable to the loss of major clients or payment defaults.
- Registered Office and Yard are on leased premises from Promoters, posing risks in case of non-renewal of lease agreements or disputes related to property use.
- Negative operational cash flow in FY24 (₹-2.48 crore), raising concerns about liquidity and the company's ability to generate sufficient cash from its core operations.
- Intense competition in the highly fragmented civil construction sector from both organized and unorganized players, leading to pricing pressures and potential impact on margins.
Financial Performance
| Period Ended | 31 Dec 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets (₹ Cr.) | 164.3 | 120.28 | 100.38 | 77.93 |
| Revenue (₹ Cr.) | 91.25 | 96.25 | 86.19 | 72.32 |
| PAT (₹ Cr.) | 10.28 | 9.25 | 5.76 | 3.02 |
| Net Worth (₹ Cr.) | 48.84 | 38.56 | 26.32 | 20.56 |
Peer Comparison
| Company | P/B Ratio | P/E Ratio | RONW (%) | Net Worth (₹ Cr.) |
|---|---|---|---|---|
| Suntech Infra Solutions | 3.43 | 18.01 | 23.97 | 48.84 |
| Crown Lifters Limited | 3.35 | 10.92 | 15.8 | 36.07 |
| Itd Cementation India Ltd. | 7.61 | 37.41 | 20.33 | 1498 |
Subscription Details
Daily Bids Status
| Date | Day 1 | Day 2 | Day 3 |
|---|---|---|---|
| QIB | 0.59x | 6.15x | 122.82x |
| NII | 3.62x | 12.92x | 529.47x |
| RII | 7.84x | 29.94x | 148.73x |
| Total | 4.87x | 19.50x | 222.94x |
Overall Subscription Statistics
| Category | Shares Offered | Shares Bid | Bid Amount (₹ Cr) |
|---|---|---|---|
| QIB | 9,80,800 | 12,04,59,200 | 1,035.95 |
| NII | 7,36,000 | 38,96,88,000 | 3,351.32 |
| RII | 17,16,800 | 25,53,39,200 | 2,195.92 |
| Total | 34,33,600 | 76,54,86,400 | 6,583.18 |
Company Details
- Unit No. 604-605-606, 6th Floor, NDM-2, Plot No. D-1-2-3, Netaji Subhash Place, Pitampura, Anandvas Shakurpura, North West Delhi, New Delhi-110034, India
- +91 8360228604
- compliance@suntechinfra.com
- https://suntechinfra.com/
Registrar Details
- Mas Services Limited
- (011) 2610 4142
- ipo@masserv.com
- https://www.masserv.com/opt.asp