Current Infra NSE SME IPO review

•    The company is largely engaged in EPC contracts across Solar, Electrical and Water EPC works.
•    It has posted growth in its top and bottom lines for the reported periods.
•    As of July 31, 2025, it had an order book worth Rs. 280+ cr.
•    Based on recent financial data, the issue appears aggressively priced. 
•    Well-informed investors may park funds for medium to long term.

ABOUT COMPANY:
Current Infraprojects Ltd. (CIL) is an infrastructure construction, development, operations and maintenance company with expertise across a wide range of services. It specializes in Engineering, Procurement and Construction (EPC) services, offering comprehensive solutions in Solar EPC, Electrical EPC, Water EPC and Civil EPC contracts, which include interior and civil works, as well as road furniture, all on a fixed-sum turnkey basis. Additionally, the company provides specialized Engineering Consulting Services in Mechanical, Electrical and Plumbing (MEP) systems, alongside Project Management Consulting (PMC) services. The company is also adopting the RESCO model to deliver renewable energy solutions on a pay-per-use basis and through long-term agreements. This will be executed via its wholly owned subsidiary companies, structured as special purpose vehicles (SPVs) specifically created for each RESCO project it undertakes. Further it is a member of Rajasthan Solar Association (RSA).

CIL’s experience spans a variety of sectors, including hospitals, commercial buildings, malls and hotels. With a commitment to delivering high-quality, reliable and efficient infrastructure solutions, it is dedicated to meet the unique requirements of each project. The company offers a comprehensive range of services with a primary focus on Engineering, Procurement, and Construction (EPC) projects, along with Engineering Consulting and Project Management Consulting (PMC). Within the EPC segment, it specializes in delivering solar energy solutions, offering end-to-end services for solar installations. This includes the design, procurement and execution of projects, such as solar-powered Road and Building Projects. Its electrical EPC services cover the shifting of utilities and the installation of high-voltage transmission lines as well as highway lighting solutions, ensuring safety and energy efficiency. It also offers water EPC services, managing large-scale water distribution projects, including pipeline installation and hand-pump installations. 

In civil EPC, it provides complete services for building construction, interior design and road infrastructure, including the installation of road furniture like guard rails and bus shelters. Additionally, its civil work expertise extends to sewage systems, where the company delivers efficient, sustainable solutions for wastewater management. Beyond EPC, it offers engineering consulting in Mechanical, Electrical and Plumbing (MEP), focusing on energy-efficient, sustainable designs for HVAC, electrical and plumbing systems in various sectors including commercial buildings, hospitals and hotels. CIL’s PMC services ensure the successful execution of complex projects from planning and budgeting to quality assurance and risk management.

Further, the company is also engaged in providing hospitality services by taking on lease a farm house property known as YAHVI The Farmhouse, which has been leased from its promoters. The property is located on the outskirts of Jaipur, and offers a range of amenities, including kitchen access, a terrace garden, dining area, parking space and more. The property is an ideal destination for travellers, offering a unique blend of comfortable accommodations and delicious food, ensuring a memorable stay. It is currently working in 12 states in India and in the last three financial years, it has executed various projects which includes, solar electrical infrastructure, road infrastructure and civil construction in the state of Tripura, West Bengal, Rajasthan, Uttar Pradesh, Maharashtra, Odissa and Kerala. As on July 31, 2025, it has executed projects aggregating to Rs. 232+ cr. Solar EPC, Electrical EPC and Water EPC has lion share in its top line. It operates on a B2B, B2G and B2C model with B2B contributing over 83% revenue. As of July 31, 2025, it had 108 employees (including 6 contract workers. As of July 31, 2025, the Company’s Order Book was Rs, 280+ cr.

ISSUE DETAILS/CAPITAL HISTORY:
The company is coming out with its maiden book building route IPO of 5225600 equity shares of Rs. 10 each to mobilize Rs. 41.80 cr. at the upper cap. It has announced a price band of Rs. 76 – Rs. 80 per share. The issue opens for subscription on August 26, 2025, and will close on August 29, 2025. The minimum number of shares to be applied is for 3200 shares and in multiples of 1600 shares, thereafter. Post allotment, shares will be listed on NSE SME Emerge. The issue constitutes 27.29% of the post-IPO paid-up capital of the company. From the net proceeds of the IPO, it will utilize Rs. 5.85 cr. for investment in wholly owned subsidiary Dhanbad solar Pvt. Ltd., Rs. 30.00 cr. for working capital, and the rest for general corporate purposes. The company has done a pre-IPO placement of 422400 equity shares at a price of Rs. 80 per share in May 2025, to mobilize Rs. 3.38 cr., and thus, the IPO size is reduced to that extent.

The IPO is solely lead managed by Holani Consultants Pvt. Ltd., while Bigshare Services Pvt. Ltd., is the registrar to the issue. HOLANI groups Holani Consultants Pvt. Ltd., is also the market maker, and a syndicate member. 

After issuing initial equity shares at par value, the company has issued further equity shares at a fixed price of Rs. 80 per share in May 2025. It has also issued bonus equity shares in the ratio of 29 for 1 in March 2021, 2 for 1 in January 2024, and 1 for 2 in December 2024. The average cost of acquisition of shares by the promoters is Rs. 0.07 per share. 

Post-IPO, company’s current paid-up equity capital of Rs. 13.92 cr. will stand enhanced to Rs. 19.15 cr. Based on the upper price band of the IPO, the company is looking for a market cap of Rs. 153.18 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last previous two fiscals, on a standalone basis, the company has posted a total income/net profit of Rs. 61.06 cr. / Rs. 1.49 cr. (FY23), Rs. 77.73 cr. / Rs. 5.09 cr. (FY24), and on consolidated basis, it marked total income/net profit of Rs. 91.33 cr. / Rs. 9.45 cr. (FY25). 

For the last three fiscals, the company has reported an average EPS of Rs. 2.61 and an average RoNW of 32.52%. The issue is priced at a P/BV of 4.55, based on its NAV of Rs. 17.58 per share as of March 31, 2025, and at a P/BV of xx based on its post-IPO NAV of Rs. xx per share (at the upper cap).

If we attribute FY25 super earnings on post-IPO fully diluted equity capital, then the asking price is at a P/E of 16.19. Based on FY24 earnings, the P/E stands at 30.08. Thus, the issue appears aggressively priced.

For the reported periods, the company has posted PAT margins of 2.45% (FY23), 6.56% (FY24), and 10.40%, (FY25), and RoCE margins of 16.52%, 29.66%, 26.49%, respectively for the referred periods. 

DIVIDEND POLICY:
The company has not paid any dividends for the reported periods of the offer document. It will adopt a prudent dividend, based on its financial performance and future prospects.

COMPARISION WITH LISTED PEERS:
As per the offer document, the company has shown K2 Infra., Oriana Power, Kay Cee Energy, Rulka Electricals, and HM Electro., as their listed peers. They are trading at a P/E of 6.91, 30.4, 24.9, 23.9, and 10.7 (as of August 22, 2025). However, they are not truly comparable on an apple-to-apple basis. This comparison appears to be an eyewash. There appears to be a typo error in the name of listed peer Kay Cee Energy, which is shown as Kay Cee Enony on page no. 132 of the offer document.

MERCHANT BANKER’S TRACK RECORD:
This is the 9th mandate from Holani Consultants in the last three fiscals including the ongoing one.  Out of the last 8 listings, all listed with premium ranging from 90.00% to 242.11% on the date of listing.