A B Infrabuild Limited IPO

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(i) AB Infrabuild Limited formerly known as AB Infrabuild Private Limited (A B Enterprises) came into existence in 1999 by a visionary Mr. Amit Bholananth Mishra. The Company got incorporated as Private Limited in the year 2011 with Registrar of Companies.

(ii) They provide various services such as civil and structural work, new station infrastructure, redevelopment of old stations, new railway lines, gauge conversion, track linking, track formation, etc. We engage in activities like building steel grinder bridges, the building of Railway Infrastructure and Road Contracts (BOT & Turnkey basis).

(iii) The Company has 100% revenue from Government Contracts in case of Infra and the Company has 100% Revenue from Private Companies in case of RMC & Others.

Objects of the A B Infrabuild Limited IPO:

The Objects of the Issue are as stated below: 1.) To meet the Working Capital Requirements. 2.) General Corporate Purposes

A B Infrabuild Limited IPO Details:

Open Date: Jun 28 2019
Close Date: Jul 03 2019
Total Shares: 4,428,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price IPO
Issue Size: 12.84 Cr.
Lot Size: 4000 Shares
Issue Price: ₹ 29 Per Equity Share
Listing At: NSE Emerge

Financials of A B Infrabuild Limited IPO:

Comparison With Peers:

As per DRHP, it has shown Man Infra and J Kumar as its listed peers that are currently trading at a P/Es of around 7 and 6 respectively.

Recommendation on A B Infrabuild Limited IPO:

Review and Recommendation of A B Infrabuild Limited IPO from IZ Team are 3/10. [ The issue is priced reasonably at P/E multiple of 10.21x. The company has 370 Cr of the order book. However, in FY17-18 the company has shown a profit of 3.43 Cr as compared to a profit of 15 lakh the previous year. The Profit has jumped manifolds due to a reduction in employee expense by 0.97 Cr and other expense by 2.36 Cr. This much increase in profit just before the IPO raises concern.]

Lead Manager of A B Infrabuild Limited IPO:

  1. Mark Corporate Advisors Private Limited

Registrar of A B Infrabuild Limited IPO:

  1. Bigshare Services Private Limited

Bid Details of A B Infrabuild Limited IPO as on
03-Jul-2019 18:00:00 IST

Category No.of shares offered No. of shares bid
2,102,000 2,528,000
2,102,000 1,552,000
224,000 224,000
4,428,000 4,304,000
QIBs No
QIBs+HNIs Subscription 1.20X
Retail Subscription 0.74X
Total Subscription 0.97X

Discussion on A B Infrabuild Limited IPO:

    Please avoid SMEs until market conditions improves.