At a Glance
Suntech Infra Solutions is laying down more than just concrete — it’s cementing a ₹44.39 crore IPO split between fresh issue and offer for sale. With fat EBITDA margins and a construction equipment rental side hustle, this B2B contractor is hoping to break ground with investors. But at ₹86/share, is this structure solid or just scaffolding?
1. 🏗️ What Does Suntech Actually Do?
If you’ve ever seen a rotary piling rig and thought, “Wow, that’s my multibagger,” — this IPO is for you.
Business Breakdown:
- Core Biz: Civil construction works — foundations, bridges, cement plants, industrial structures
- Side Hustle: Construction equipment rental (piling rigs, cranes, hammers — not the Thor kind)
- Clients: IOCL, Ultratech, ITPO (Bharat Mandapam), Unity Group
- Presence: Delhi, Bihar, Gujarat, Orissa, Rajasthan
- Workforce: 462 full-time employees + 200 casuals (aka “jo mil gaya, laga diya”)
🧱 Order Book:
- ₹186.37 Cr in active civil works
- ₹10.92 Cr in equipment rentals
2. 🧾 IPO Details – Concrete Valuation or Brick in the Wallet?
| Component | Value |
|---|---|
| 💰 Total Issue | ₹44.39 Cr |
| 🆕 Fresh Issue | ₹34.18 Cr |
| 🧓 Offer for Sale | ₹10.21 Cr |
| 🏷️ Price Band | ₹81–₹86 |
| 📦 Lot Size | 1,600 shares |
| 💸 Retail Amount | ₹1,37,600 per lot |
| 📈 Listing | NSE SME (July 2, 2025) |
| 🛠️ Lead Manager | GYR Capital Advisors |
| 🧾 Registrar | MAS Services |
| 🧱 Market Maker | Giriraj Stock Broking |
📣 Anchor Raised ₹12.63 Cr (strong participation = some cement is already set).
3. 🧾 Financials – Solid Foundation or Cracks Beneath?
| FY Ended | FY22 | FY23 | FY24 | 9M FY25 |
|---|---|---|---|---|
| Revenue | ₹72 Cr | ₹86 Cr | ₹96 Cr | ₹91 Cr |
| PAT | ₹3.02 Cr | ₹5.76 Cr | ₹9.25 Cr | ₹10.28 Cr |
| EBITDA | ₹13.47 Cr | ₹19.99 Cr | ₹27.22 Cr | ₹29.57 Cr |
| Net Worth | ₹20.56 Cr | ₹26.32 Cr | ₹38.56 Cr | ₹48.84 Cr |
| Debt | ₹34.25 Cr | ₹33.38 Cr | ₹56.38 Cr | ₹79.93 Cr |
🧮 EBITDA Margin = 28.28%
📈 PAT Margin = 9.67%
💥 ROE = 28.5%
⚠️ D/E = 1.46 (Debt-heavy but manageable in infra)
🤔 9-month FY25 profit > full FY24? Either they’re killing it… or someone’s greasing the ledger.
4. 💸 Valuation – Cemented Fairly or a Flyash Trap?
| Metric | Pre-IPO | Post-IPO |
|---|---|---|
| EPS (₹) | 6.01 | 7.08 |
| P/E Ratio | 14.31x | 12.15x |
| Market Cap | – | ₹166.52 Cr |
| Price to Book | – | 3.43x |
🧮 FV Estimate:
- FY25 annualized PAT ~ ₹13.7 Cr
- Post-IPO shares = 1.93 Cr → EPS = ₹7.08
- At 12x–15x P/E → Fair Value = ₹85–₹106
🎯 IPO upper band is ₹86, which is within FV zone. Not dirt cheap, but no overbuild.
5. 🧠 Strengths & Loose Screws
✅ Strengths:
- 📦 Fat order book
- 🏗️ Equipment rental side biz = better asset utilization
- 👷 Good client mix (IOCL, Ultratech, ITPO = name drop worthy)
- 🔧 Strong ROE and EBITDA margins
❌ Weak Points:
- 💸 OFS component → partial promoter exit
- 💥 Debt ballooned in FY25 → careful, infra can become interest-heavy
- 🚧 SME IPO = low liquidity + longer time for institutional coverage
- 🧱 Construction = inherently volatile sector (input cost, delays, payment cycles)
6. 🛠️ Where’s the Money Going?
| Purpose | Amount (₹ Cr) |
|---|---|
| Working Capital | ₹12.21 |
| Capex for New Equipments | ₹12.51 |
| General Corporate Purpose | Balance |
🏗️ They’re buying more machines to build more stuff. A straightforward reinvestment.
7. 🧠 EduInvestor Verdict – Apply or Bulldoze?
Suntech Infra isn’t a speculative fly-by-night operator. It’s a real infra company with real assets and real cranes.
- Financials are growing.
- Margins are strong.
- Pricing is in the zone.
But like all infra plays:
- Working capital is king.
- Execution risks are real.
- And IPO optimism may overrun realistic delivery timelines.
Final Verdict:
If you like infra + margin + moderate pricing = ✅
If you hate waiting and illiquidity = ❌ SME IPOs aren’t for you.
🏷️ Tags:
Suntech Infra IPO, B2B Construction IPO, Cement & Infra SME IPO, NSE SME IPO June 2025, Giriraj Broking IPO, High EBITDA margin IPO, Construction equipment rental IPO
✍️ Written by Prashant | 📅 June 23, 2025
