Integrity Infrabuild Developers listed at ₹100.80

A rising name in civil construction, Integrity Infrabuild Developers Limited is set to debut on the NSE SME platform through its IPO scheduled from May 13 to May 15, 2025. Based in Gujarat, the company specialises in executing government infrastructure projects, with a strong focus on roads, buildings, and bridge construction. As a Class-A registered contractor with the Government of Gujarat, Integrity Infrabuild has built a reputation for timely project delivery and operational efficiency.  

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Integrity Infrabuild Developers Listing Details

The IPO price is ₹100 per share, with a minimum application size of 1,200 shares. This means retail investors have to invest ₹1,20,000.

• Listing Date: Integrity Infrabuild Developers IPO shares price is listed on the NSE SME platform on May 20, 2025, at ₹100.80, with a market capitalisation of around ₹43 crores.
• Investor Sentiment: Investors seem interested in this IPO because of a strong 30.60% ROE and consistent work on government projects.

First-Day Trading Performance Outlook

Integrity Infrabuild Developers IPO listed on May 20 at ₹100.80 per share, showing a stable to modest debut. Analysts say the performance reflects strong government contracts and a growing order book. However, further gains may be limited due to high valuations in the SME infrastructure space.

Market Sentiment and Analysis

Founded in 2017, Integrity Infrabuild Developers has built a strong presence in Gujarat’s public infrastructure sector, focusing on road, building, and bridge construction. Its solid financial performance, ROE of 30.60%, and government-backed projects have generated interest among infrastructure-focused investors.

Investor Response: With consistent revenue growth and a visible project pipeline, the IPO has attracted attention from long-term investors looking for exposure to the construction sector.

Listing Expectations: While the company’s fundamentals are sound, the post-issue P/E of 16.6 may keep listing gains moderate. Analysts expect a steady debut, depending on market conditions and SME liquidity.

Growth Drivers and Challenges

Integrity Infrabuild Developers appears positioned for steady expansion, thanks to its focus on government contracts, a healthy order backlog, and disciplined project execution. Yet headwinds persist: a heavy debt load, thin operating margins, and dependence on a few geographic markets could limit flexibility. The interplay of these strengths and constraints will shape the firm’s long-term trajectory.

Growth Drivers

• Government-Focused Projects: Registered as a Class-A contractor with the Government of Gujarat, ensuring steady project inflow.
• Strong Order Book: ₹163.07 crore worth of ongoing government contracts as of March 31, 2025.
• Efficient Project Execution: Consistent delivery of public infrastructure projects across roads, buildings, and bridges.
• Healthy ROE: Return on Equity of 30.60% reflects operational efficiency and profitability.
• Use of IPO Funds: Strategic investment in machinery and working capital to boost execution capabilities.

Challenges

• High Debt Level: Debt-to-equity ratio of 3.71 raises concerns about leverage and financial flexibility.
• Thin Profit Margins: PAT margin of 1.47% suggests pressure on earnings.
• SME Market Volatility: Lower liquidity on SME platforms may cause post-listing price swings.
• Regional Dependency: Business is concentrated in Gujarat, limiting geographic diversification.
• Competitive Bidding: Heavy reliance on government tenders with competitive pricing pressures.

Utilisation of IPO Proceeds

The funds from the IPO will be used to support business expansion and improve project execution capabilities, as follows:
Purchase of Machinery and Equipment: ₹5.03 crore will be used to acquire new construction machinery and tools to handle larger projects more efficiently.

• Working Capital Requirements: ₹3.64 crore will go towards meeting day-to-day operational needs and managing cash flow during project execution.
• General Corporate Purposes: ₹2.40 crore will be allocated to support overall business operations, strategic planning, and future growth initiatives.

Financial Performance of Integrity Infrabuild Developers

Integrity Infrabuild Developers have experienced steady financial growth over the past few years:

• Revenue: The firm has recorded revenues of ₹ 68.97 crore till 31 December 2024, consistent with project implementation in the government infrastructure field.
• Net Profit: The firm realised a profit of ₹ 1.94 crores to 31 December 2024, good margins ensuring operational stability.
• Net Worth: The net worth has increased from ₹2.55 crore during FY22 to an impressive ₹4.56 crore as of Dec 2024. Still, there are signs of good financial status outperforming the company, and that could be mainly due to project realisations and retained earnings.

Integrity Infrabuild Developers, a construction firm focused on government infrastructure, is turning to the stock market to finance its next growth phase. With a strong order book, improving financial performance, and a clear plan for the use of IPO funds, the company aims to expand its activities within Gujarat and outside. It does face some Indian market risks, such as high debt and low margins, but steady progress is something that brings it to the attention of SME infrastructure watch lists.