🚧 Integrity Infrabuild Developers Ltd. is coming to the market with its SME IPO from May 13 to May 15, 2025, looking to raise ₹12 crore by offering shares at a fixed price of ₹100 each. The company builds roads and bridges — but can it build wealth for investors? Let’s dig through the restated financial bricks and see if there’s gold in this gravel.
👷 About the Company: We Build, Therefore We Are
Based in Gujarat, Integrity Infrabuild is a civil construction firm specializing in government contracts. From roads and bridges to buildings and excavation projects, they’re the people behind the scenes (and under the overpasses). The firm, originally formed in 2017 as a partnership, got a corporate facelift in 2024 and is now ready to test the public waters with your hard-earned money.
The question is: will this IPO pave the way to riches, or is it a financial pothole?
💼 IPO Snapshot
| Details | Info |
|---|---|
| IPO Dates | May 13–15, 2025 |
| Listing Date | May 20, 2025 |
| Issue Price | ₹100 (Fixed) |
| Lot Size | 1,200 shares |
| Minimum Investment | ₹1,20,000 |
| Issue Size | ₹12 crore |
| Platform | NSE SME |
| Lead Manager | Aryaman Financial Services |
A ₹1.2 lakh ticket to enter a small construction company may sound risky, but what’s life without a little high-stakes concrete mixing?
📊 Financials: Let’s Get Real (Restated)
🔍 Balance Sheet (₹ in Crores)
| Metric | FY24 | FY23 | FY22 |
|---|---|---|---|
| Assets | 20.67 | 15.24 | 13.06 |
| Net Worth | 3.10 | 1.78 | 2.55 |
| Total Debt | 14.11 | 8.22 | 9.62 |
Verdict: Assets are growing, but debt is growing faster than a construction delay excuse list. Debt-to-equity for FY24 is 4.55x — that’s not leverage, that’s a full-blown seesaw.
📈 P&L (₹ in Crores)
| Metric | FY24 | FY23 | FY22 |
|---|---|---|---|
| Revenue | 64.47 | 45.18 | 33.42 |
| EBITDA | 3.57 | 2.62 | 1.60 |
| PAT | 0.95 | 0.30 | 0.30 |
Verdict: Revenue has doubled in two years — so someone’s clearly placing orders. But PAT in FY24 is just ₹0.95 crore, giving us the kind of margins you’d expect from selling samosas at a high-end hotel. Tasty, but not scalable.
📊 Key Performance Indicators (KPI)
| Metric | FY24 | FY23 | FY22 |
|---|---|---|---|
| EBITDA Margin (%) | 5.54 | 5.80 | 4.79 |
| PAT Margin (%) | 1.47 | 0.66 | 0.90 |
| EPS (₹) | 3.06 | 0.95 | 0.97 |
| ROE (%) | 30.65 | 16.85 | 11.76 |
| ROCE (%) | 17.64 | 11.16 | 10.94 |
| ROA (%) | 4.60 | 1.97 | 2.30 |
| Debt/Equity (x) | 4.55 | 4.62 | 3.77 |
Verdict:
- ROE of 30.65% in FY24? Sounds brilliant… until you realize it’s riding on a mountain of debt.
- PAT margins are still under 2%, which means for every ₹100 earned, only ₹1.47 sticks around. Even your local vada pav stall has better margins (and probably fewer auditors).
🏗️ IPO Money Usage: How Will They Build the Future?
- Machinery Purchase – ₹5.03 crore
- Working Capital – ₹3.64 crore
- General Corporate Stuff – ₹2.4 crore
Let’s hope “general stuff” includes debt repayment, because this balance sheet is looking like it was designed by a Jenga champion.
😂 The Funny Bit: Cementing the Irony
You’ve got to hand it to Integrity Infrabuild — the company name has “Integrity” right there in bold. Refreshing, isn’t it? It’s like naming a politician “Honest Sharma.” You want to believe it, but there’s always that “hmm” moment.
Also, with margins this tight, one wonders if they’re building roads or tightropes. And with a debt-to-equity ratio that would give an F1 car a run for its money, the company seems to be more into financial acrobatics than construction engineering.
🤔 Should You Invest?
✅ Pros:
- Strong Revenue Growth: From ₹33.42 crore in FY22 to ₹64.47 crore in FY24.
- High ROE & ROCE: 30.65% and 17.64% respectively in FY24.
- Experienced Promoters: They’ve handled public infrastructure projects, so they’re no newbies.
❌ Cons:
- Debt Overload: D/E of 4.55x is dangerously high for a small-cap firm.
- Low Margins: PAT margin below 2% even after strong revenue growth.
- SME IPO Risks: Lower liquidity and limited analyst coverage post-listing.
🧠 Final Verdict: A Road Less Travelled?
Integrity Infrabuild Developers has the roadmap, but is it driving on four tires or a prayer?
- If you’re a seasoned investor comfortable with high-risk, small-cap bets that ride on government contracts — this could be worth looking at.
- But if you’re the type who checks your FD balance twice a day for peace of mind, you may want to let this bulldozer pass.
There’s potential, no doubt. But this is a company balancing high ambitions on narrow profit margins and tall debt towers. Proceed with caution — and maybe a helmet.
