Gujarat-based construction company Chavda Infra raises Rs 12.32 crore from anchor investors ahead of IPO

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Gujarat-based construction company Chavda Infra has raised Rs 12.32 crore from marquee investors, including Morgan Stanley Asia (Singapore), NAV Capital VCC – NAV Capital Emerging Star Fund, Acintyo Investment Fund PCC – Cell I, and Neomile Growth Fund – Series I, ahead of its initial public offering (IPO).

The anchor investors have subscribed to 18.96 lakh equity shares at a price of Rs 65 per share. NAV Capital and Morgan Stanley were the biggest investors, buying Rs 3.32 crore and Rs 2.99 crore worth of shares, respectively.

The IPO of Rs 43.26 crore will open for subscription on September 12, with a price band of Rs 60-65 per share. The IPO comprises only a fresh issue of 66.56 lakh equity shares by the company.

Chavda Infra provides construction and allied services across residential and commercial projects in Gujarat. The company will use the net proceeds from the IPO to fund working capital requirements and general corporate purposes.

The total issue will constitute 27 percent of the post-issue paid-up equity capital. The offer will close on September 14.

Chavda Infra has 26 ongoing projects worth approximately Rs 601.39 crore as of May 2023. The trading in equity shares will commence on the NSE Emerge with effect from September 25, as per the IPO schedule.

The company has a strong track record of execution and has completed several landmark projects in Gujarat. It is well-positioned to capitalize on the growing demand for construction services in the state.

The IPO is expected to be well-received by investors, given the company’s strong fundamentals and growth prospects.


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