Experts: Udayshivakumar Infra set for strong premium in April 3 debut

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Udayshivakumar Infra Set for Debut with Strong Premium on 3rd April

Udayshivakumar Infra is set to make an impressive entry into the market on April 3, with analysts predicting a positive reception due to improved market sentiment, increased focus on infrastructure development, and strong subscription numbers.

The company, which will be the first to list on bourses in the financial year 2023-24, closed its initial public offering (IPO) on March 23 with a subscription rate of 30.63 times, indicating strong demand. High net worth individuals oversubscribed by 60.42 times their allotted quota, qualified institutional buyers by 40.47 times, and retail investors by 14.10 times.

Based in Karnataka and engaged in road construction, the company offered shares at a price band of Rs 33-35 each, with Anubhuti Mishra, Equity Research Analyst at Swastika Investmart, expecting a premium of 30-35% over the final issue price of Rs 35 a share at the time of listing.

In the unofficial grey market for IPO shares, Udayshivakumar Infra’s shares were trading at a premium of around Rs 11, indicating positive investor sentiment. The recent rally of nearly 1,400 points in the BSE Sensex, driven by positive global vibes, stable oil prices, and FIIs buying, also adds to the positive outlook for the company.

Experts are bullish on the infrastructure sector due to significant government support, with Udayshivakumar Infra having a strong order book of Rs 1,290.4 crore as of December 31, 2022. However, the company’s financial performance in recent years has been mixed, with concerns over dependency on a limited number of clients.

Manish Chowdhury, Head of Research at Stoxbox, also predicts a premium of around 30% for Udayshivakumar Infra, citing reasonable valuations, strong execution capabilities, and an experienced management team as the primary factors for the IPO’s success.

About Udayshivakumar Infra:

Udayshivakumar Infra was founded in 1995 with the goal of undertaking infrastructure projects. The founders of the company established the primary objective of pursuing opportunities in both small and medium-sized industrial projects, as well as larger industrial and infrastructure endeavors.

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