Udayshivakumar Infra lists at a 14% discount in spite of a stellar subscription

• Shares of Udayshivakumar Infra listed at ₹30 against the upper price band of ₹35 per share on NSE.
• The IPO was subscribed 32.49 times on the last day of the IPO bidding process.
• The market capitalisation of the company stood at ₹184 crore as of 12:08 pm, according to BSE data.

Shares of Karnataka-based road construction company Udayshivakumar Infra made a weak debut on the stock exchanges, on Monday. The shares listed at a 14% discount at ₹30, against the upper price band of ₹35 per share on NSE. Meanwhile on BSE, shares of the company opened at ₹35.

This comes as a surprise as the IPO was massively subscribed – by 32.49 times on the last day of the IPO bidding process.

Moreover, the grey market had expected a listing premium of ₹5 per share. GMP is the premium at which IPO shares are traded in an unofficial market before they are listed on the stock exchanges.

The market capitalisation of Udayshivakumar Infra currently stands at ₹184 crore, according to BSE data.

The IPO was in high demand among non-institutional investors who subscribed the IPO by 64 times followed by qualified institutional investors who subscribed by 42.92 times.

Udayshivakumar Infra is in the business of constructing roads, bridges and irrigation projects in Karnataka, including for government departments. It aims to gradually expand its business operations in other Indian states.

The company has 46 work orders in hand that aggregate to an order book of ₹1,290 crore as on December 31, 2022.

The company is entirely owned by chairman and managing director Udayshivakumar who owns 98.97% stake in the company while 1% stake is held by his wife Amrutha.

The IPO is a completely fresh issue, and the funds raised through the IPO will be utilised towards funding incremental working capital requirements, besides general corporate purposes.

The company’s aggregate outstanding indebtedness was at ₹49.8 crore as on December 31, 2022. Its profits have improved by 33% from a year earlier to ₹12 crore in FY22.

Udayshivakumar Infra’s business is concentrated in the state of Karnataka – it generates its entire revenue from projects in the state. Moreover, it receives 81% of its revenue from the top ten customers.

“We derive a significant portion of our revenues from a limited number of clients. The loss of any significant clients may have an adverse effect on our business, financial condition, results of operations, and prospects,” the company said in its prospectus.


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