Chavda Infra IPO opens on September 12, price band set at Rs 60-65 per share

Chavda Infra IPO opens on September 12

Gujarat-based Chavda Infra has decided to launch the Rs 43.26 crore initial public offering for subscription on September 12, with a price band of Rs 60-65 per share.

The IPO comprises only a fresh issue of 66.56 lakh equity shares by the construction company.

This means the entire issue proceeds will be utilised by the firm for working capital requirements amounting to Rs 27 crore, and the remaining for general corporate purposes and issue expenses.

The company that provides construction and allied services across residential and commercial projects in Gujarat has reserved 3.36 lakh equity shares for the market maker and remaining 63.2 lakh equity shares portion is the net issue.

Half of the net issue size, i.e. 31.6 lakh shares, is reserved for qualified institutional buyers, 15 percent (9.48 lakh shares) for high networth individuals and the remaining 35 percent (22.12 lakh shares) for retail investors.

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The total issue will constitute 27 percent of the post issue paid-up equity capital. The offer will close on September 14.

Incorporated in 2012, the contract construction services provider has executed more than 100 projects worth Rs 670.99 crore. As of May 2023, it has 26 on-going projects worth approximately Rs 601.39 crore comprising four commercial projects, four institutional projects and 18 residential projects.

The Ahmedabad-based Chavda group company will finalise the basis of allotment of IPO shares by September 20 and the equity shares will be credited to demat accounts of successful investors by September 22.

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Equity shares will be listed on the NSE Emerge on September 25, as per the IPO schedule.

Beeline Capital Advisors is the merchant banker, and Kfin Technologies is the registrar to the offer.