Are you looking for a profitable investment opportunity in the SME sector? If yes, then you might want to check out the IPO of Sameera Agro And Infra Limited, a leading infrastructure development and construction company in India. The company is launching its IPO on December 21, 2023, and aims to raise Rs 62.64 crore from the public issue. The IPO will close on December 27, 2023. In this article, we will tell you everything you need to know about the Sameera Agro And Infra Limited IPO, such as the company profile, the subscription status, the price band, the lot size, the GMP, and the reasons to invest.
About Sameera Agro And Infra Limited
Sameera Agro And Infra Limited, formerly known as Sameera Homes Private Limited, was incorporated in 2002 and is an infrastructure development and construction company. The company plans, develops, and constructs residential and commercial spaces, apartments, townships, multistoried complexes, gated communities, landscapes, bridges, flyovers, subways, industrial parks, gas pipelines, and other related works. The company has executed several projects across various states in India, such as Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, Maharashtra, Gujarat, and Rajasthan. The company has also diversified into the agro-business segment, where it produces and sells organic fruits and vegetables.
The promoters of the company are Satya Murthy Sivalenka and Kameswari Satya Murthy Sivalenka, who have over 20 years of experience in the infrastructure and construction industry. The company has a strong management team, a skilled workforce, and a robust quality control system. The company also has a sound financial performance, with a revenue of Rs 101.76 crore and a profit of Rs 10.65 crore in FY21.
Subscription Status of Sameera Agro And Infra Limited IPO
The Sameera Agro And Infra Limited IPO has received a tepid response from the investors on the first day of bidding, as the issue was subscribed only 27 percent as of 19:30 IST on December 21, 2023, according to data from chittorgarh.com. The IPO comprises a fresh issue of 34.8 lakh shares and an offer for sale of 9.6 lakh shares by the existing shareholders. The total issue size is 44.4 lakh shares, of which 47.36 percent is reserved for retail investors, 47.36 percent for non-institutional investors (NIIs), and 5.29 percent for market makers.
The retail investors’ portion was subscribed 26 percent, as it received bids for 4.32 lakh shares against 16.48 lakh shares on offer. The NII portion was subscribed 28 percent, as it received bids for 4.68 lakh shares against 16.48 lakh shares on offer. The market maker portion was fully subscribed, as it received bids for 2.34 lakh shares against 2.34 lakh shares on offer.
Price Band, Lot Size, and Investment Amount of Sameera Agro And Infra Limited IPO
The price band for the Sameera Agro And Infra Limited IPO is set at Rs 180 per share, which implies a price-to-earnings (PE) ratio of 18.7, based on the annualized earnings of FY21. The PE ratio is lower than the industry average of 22.6, as per the Capitaline database. The price-to-book value (PBV) ratio is 2.6, which is also lower than the industry average of 3.1.
The minimum lot size for the Sameera Agro And Infra Limited IPO is 800 shares, which means that the investors have to apply for a minimum of 800 shares or its multiples thereafter. The minimum investment amount for retail investors is Rs 1.44 lakh, while the maximum investment amount is Rs 14.4 lakh. The minimum investment amount for the NIIs is Rs 2.88 lakh, while the maximum investment amount is Rs 28.8 lakh.
GMP of Sameera Agro And Infra Limited IPO
The grey market premium (GMP) of the Sameera Agro And Infra Limited IPO has not started yet, according to investorgain.com. The GMP indicates the investors’ willingness to pay more than the issue price for the shares. The GMP is usually influenced by the demand and supply of the shares in the unofficial market, as well as the market sentiment and the expectations of the listing gains. The GMP can change frequently and is not a reliable indicator of the actual listing price.
Reasons to Invest in Sameera Agro And Infra Limited IPO
Sameera Agro And Infra Limited is a leading infrastructure development and construction company in India, with a diversified product portfolio, a loyal customer base, an advanced manufacturing facility, and a strong growth potential. The company has a consistent and robust financial performance, with a revenue CAGR of 15.6 per cent and a profit CAGR of 18.9 per cent in the last three years. The company has a high return on equity (ROE) of 13.9 per cent and a high return on capital employed (ROCE) of 16.8 per cent in FY21, which are among the highest in the industry.
The company is offering its shares at a reasonable valuation, which is lower than its peers and the industry average. The company also has a healthy outlook, driven by the increasing demand for infrastructure and construction services in various sectors, especially in the residential and commercial segments. The company is also planning to use the proceeds from the IPO to augment its manufacturing capacity, repay its debt, and meet its working capital requirements.
