The market is buzzing with anticipation for an upcoming IPO that is already showing a promising response even before its official opening. With a cut-off price set at ₹80 per share and robust activity in the Grey Market Premium (GMP), investors are keen to understand the details of this offering. This article delves into the specifics of the Current Infra Project Limited IPO, covering its business, financial health, and key offering details.
About Current Infra Project Limited
Established in 2013, Current Infra Project Limited operates as an infrastructure and approved renewable energy company. It specializes in offering comprehensive services across various engineering disciplines, including Civil, Mechanical, and Electrical Water Engineering. The company’s core services encompass Engineering, Procurement, Construction (EPC) solutions for solar, electrical, water, and civil contracts. This also extends to interior works, road construction, and fixed-sum trunking services.
Beyond its core EPC offerings, Current Infra Project Limited also provides specialized engineering consulting services in mechanical, electrical, and plumbing, along with project management consulting. The company further diversifies its revenue streams through hospitality services, specifically leasing farmhouses under its ‘Yaavi’ brand. Currently, Current Infra Project Limited boasts operations across 12 Indian states. As of July, the company has successfully completed projects totaling ₹23,209 lakhs and employs 108 permanent staff.
Competitive Strengths of Current Infra Project Limited
Current Infra Project Limited prides itself on several competitive advantages. It has established itself as a focused EPC player, committed to quality, demonstrated by its NABL Quality Assurance Lab. The company maintains a strong order book, consistently securing repeat orders and fostering long-standing relationships with its clients. The company is strategically positioned to benefit significantly from the Government of India’s increased focus on the infrastructure sector, which bodes well for its future growth trajectory.
Current Infra Project IPO Details & Important Dates
The Initial Public Offering (IPO) of Current Infra Project Limited is a Book-Built Issue with a face value of ₹10 per share. The company has set a price band ranging from ₹76 (lower end) to ₹80 (upper end) per equity share. Investors typically apply at the upper end of the price band. A standard lot size for application is 1600 equity shares.
Key Dates for the IPO:
- IPO Opening Date: August 26
- IPO Closing Date: August 29 (Friday)
- Allotment Date: September 1
- Refund Initiation Date: September 2
- Demat Account Credit Date: September 2
- Listing Date: September 3 (Expected to list on both BSE and NSE)
Issue Details and Fund Utilization
The Current Infra Project IPO is entirely a Fresh Issue, aiming to raise a total of ₹41.88 Crores from the market. This means all the capital raised will directly flow into the company, which plans to utilize these funds primarily for enhancing its growth initiatives. Out of the total issue, approximately ₹79 lakhs has been reserved for the employee category. After accounting for the 2.15% share allocated to market makers, a substantial ₹38.86 Crores will be directed towards company operations and expansion. The IPO is slated for listing on the NSE SME platform.
Share Allotment Breakdown
The distribution of shares among different investor categories is as follows:
- Market Makers: 5.24%
- Qualified Institutional Buyers (QIBs), including Anchor Investors: 47.25%
- High Net Worth Individuals (HNIs), including Small and Big HNI: 14.23%
- Retail Investors: 33.27%
Anchor Investor Details & Lock-in Periods
Shares worth ₹11.62 Crores were allocated to anchor investors on August 25. For these anchor investors, a specific lock-in period applies: 50% of their allocated shares can be sold after 30 days (around October 1), while the remaining 50% will be unlocked after 90 days (around November 13). These dates are crucial for long-term investors monitoring the share’s performance post-listing.
Application Amounts and Promoter Holding
For individual retail investors, a maximum of two lots can be applied for, requiring an investment of approximately ₹2,56,000. Small HNI applicants would need around ₹3,84,000, while Big HNI applicants would require approximately ₹10,24,000.
Pre-IPO, the promoter holding in Current Infra Project Limited stood at 96.96%. Post-IPO, this will decrease to 70.50%, indicating a continued significant stake by the promoters.
Financial Highlights (FY25 Data)
While more comprehensive historical financial data was not available, the company has provided figures for what is referred to as “Fiscal Year 25.”
- Assets: Approximately ₹80 Crores
- Income: Approximately ₹91 Crores
- Profit After Tax (PAT): Approximately ₹9.5 Crores
- EBITDA: ₹14.75
- Net Worth: ₹23.73
- Reserves & Surplus: ₹10.23
- Borrowings: ₹30 Crores
- Debt-to-Equity Ratio: 1.29 (The company aims to reduce this with the IPO proceeds; a ratio above 1 is generally considered a red flag).
Key Financial Ratios and Valuation
The fundamental analysis reveals several strong points for Current Infra Project Limited:
- Return on Equity (ROE): Approximately 50% (considered above average)
- Return on Capital Employed (ROCE): 26.49% (considered above average)
- Rate on Net Worth: Approximately 40%
- Profit After Tax (PAT) Margin: Above 10%
- EBITDA Margin: 16.23%
- Price-to-Book Value (P/B): 4.55
- Pre-IPO Price-to-Earnings (P/E) Ratio: 11.78
- P/E Ratio at IPO Cut-off Price: Approximately 12
These valuation metrics suggest that the company is being offered at a reasonable valuation, which contributes to the positive pre-opening sentiment.
Current Infra Project IPO Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Current Infra Project IPO is currently trading at ₹40. Considering the cut-off price of ₹80, this suggests an implied listing price of ₹120 per share (₹80 + ₹40). This indicates a potential listing gain of approximately 50%, translating to an expected gain of around ₹6,400 per lot (₹40 GMP x 1600 shares per lot). This strong GMP performance is a key driver of investor interest ahead of the IPO opening.
Stay tuned for more real-time updates regarding the Current Infra Project IPO. For any further questions or doubts, feel free to engage in the comments section.
