22 February 2024

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Chavda Infra IPO

All You Need To Know About Chavda Infra IPO

On September 12th, Chavda Infra, a Gujarat-based construction company, plans to undertake its initial public offering (IPO). The Chavda Infra IPO will be worth Rs 43.26 crore in total and will consist of a fresh issue of 66.56 lakh equity shares. Here’s a rundown of the important points:

IPO Size: The total size of the IPO is Rs 43.26 crore.

Price Band: The shares in the Chavda Infra IPO will be offered in a price band of Rs 60 to Rs 65 per share. This means that investors can bid for the shares within this price range.

Utilization of Proceeds: Chavda Infra plans to utilize the full amount received through the IPO, Rs 43.26 crore, for particular purposes:

  • Working Capital Requirements: A portion of the money, totaling Rs 27 crore, would be used to meet the company’s working capital requirements. This can involve day-to-day operations, project execution, and managing short-term financial demands.
  • General Corporate Purposes: The rest of the funds will be used for general corporate reasons. This category is broad and may encompass actions such as corporate expansion, debt repayment, technological upgrades, or any other reason that benefits the company’s overall operations and growth.
  • Issue Expenses: A percentage of the assets may also be used to cover the costs of conducting the IPO, such as underwriting fees, legal fees, marketing expenses, and other administrative costs associated with the IPO process.

Chavda Infra IPO GMP

The Chavda Infra IPO GMP aka Grey Market Premium is ₹20.

Chavda Infra IPO

The choice by Chavda Infra to go public via an IPO is a means of raising funds to support its growth and financial needs. Investors interested in participating in the IPO can place bids for shares within the designated price range beginning September 12th. Before making investment decisions, potential investors should thoroughly analyze the IPO prospectus and undertake their own due diligence.

Chavda Infra, a Gujarat-based construction and allied services firm, has precisely allocated its equity shares for its planned IPO. The company has reserved 3.36 lakh shares of the total offering of 66.56 lakh equity shares for the market maker, whose role is critical in preserving liquidity and stability in the stock’s trading post-IPO.

The net issue size comprises the majority of the offering, which consists of 63.2 lakh equity shares. Chavda Infra has set aside 31.6 lakh shares for qualified institutional buyers (QIBs), a category that normally includes institutional investors such as mutual funds, banks, and insurance companies.

Furthermore, 9.48 lakh shares, or 15% of the net issuance, have been reserved for high-net-worth individuals (HNIs). The remaining 22.12 lakh shares, or 35% of the net issuance, are reserved for retail investors. This strategic allocation serves a wide variety of investor groups, ensuring widespread participation in the IPO and facilitating the company’s capital-raising goals for working capital and other corporate reasons. During the Chavda Infra IPO subscription period, investors will be able to subscribe to shares within the specified price band.

The initial public offering (IPO) of Chavda Infra comprises 27 percent of the company’s post-issue paid-up equity capital. The IPO subscription period will end on September 14th. Chavda Infra, which was founded in 2012, has a great track record in the contract construction services sector, having completed over 100 projects for about Rs 670.99 crore. Furthermore, as of May 2023, the company had 26 ongoing projects totaling around Rs 601.39 crore. These projects represent a diversified portfolio, with four commercial projects, four institutional projects, and 18 residential projects included.

The basis of allotment for IPO shares is expected to be concluded by September 20th for investors participating in the IPO. By September 22nd, successful applicants will have their equity shares credited to their demat accounts. The equity shares of Chavda Infra will be listed on the NSE Emerge on September 25th.

Beeline Capital Advisors serves as the IPO’s merchant banker, which is critical in enabling the offering and maintaining regulatory compliance. Kfin Technologies, on the other hand, functions as the offer’s registrar, overseeing the administrative parts of the IPO, such as application processing and share allocation. These major service providers help the seamless execution of Chavda Infra‘s IPO process.

What is Chavda Infra IPO GMP Today?

The Chavda Infra IPO GMP aka Grey Market Premium is ₹20.

What is Chavda Infra IPO Kostak Rates Today?

The Chavda Infra IPO Kostak Rate is ₹-

What is Chavda Infra IPO Subject to Sauda Price Today?

The Chavda Infra IPO subject to sauda rates is ₹30000.

Chavda Infra IPO Expected Returns?

The Chavda Infra expected return is 31%.