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Incorporated in 2019, Udayshivakumar Infra Limited is engaged in the business of construction of roads including National Highways, State Highways, District Roads, Smart Roads under PM?s Smart City Mission projects,Smart Roads under Municipal Corporations, Bruhat Bengaluru Mahanagara Palike (BBMP) and Local Area Roads in various Taluka Places etc., in the State of Karnataka, Constructions of Bridges across Major and Minor Rivers, Railway Over Bridges (ROB), construction of Major and Minor Irrigation and canal projects, Industrial Areas, based in the State of Karnataka. The Company bid for Roads, Bridges, Irrigation & Canals, Industrial Area construction in the State of Karnataka including Government Departments.

* The Company along with the erstwhile partnership firm, M/s. Udayshivakumar, have executed various projects in the State of Karnataka. Since Fiscal 2015, The Company along with the erstwhile partnership firm, M/s. Udayshivakumar, have completed 30 projects having an aggregate contract valueof ?68,468 lakhs.

* As on December 31, 2022, they also have new work orders allotted (but work not yet started) comprising of fourteen (14) roads, one (1) toll plaza and one (1) irrigation works with an aggregate order book value of ? 43,650.98 lakhs.

* In addition to independently undertaking projects like the ones they have executed in the past, they intend to enter into joint ventures with other infrastructure companies in the industry to jointly bid and execute larger projects.

* In order to execute the work on time and to reduce the cost of procurement for the raw material required for completion of a civil projects, the Company has set-up RMC plants at different locations as backward integration. After captive consumption, the RMC are also sold to other small contractors, commercial and residential builders for their construction projects

Outlook & Valuation: Developing and modernizing the infrastructure sector has been a priority for the Government of India and has witnessed increasing public investments and budgetary support. Udayshivakumar Infra is engaged in the construction of roads, bridges, and flyovers in the state of Karnataka. The company has a strong order book and great execution capabilities with industry experience. Over the last 3 years, the company has reported a mix set of financial results. The company is operating in a limited geographic location where it is dependent on a limited number of clients, especially government projects, which could be a risk. The IPO is coming at a P/E valuation of 10.51, which is fairly priced. So, finally, our view on the overall sector is bullish, but as this particular offer is very small in size, we will recommend only High-risk investors to Subscribe this IPO.

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