R & B Infra Project Ltd IPO

The infrastructure company R & B Infra Project Ltd. received SEBI’s green light for its DRHP on 3rd March, 2023. Therefore, there is a high probability that the company will launch its RHP soon as its one-year time limit is nearing.

This IPO will comprise a fresh issue as well as an Offer for Sale (OFS). The fresh issues will include up to 35,00,000 equity Shares. OFS will include up to 15,00,000 equity shares. The shares will be offered for sale by the Promoter Ratansingh Rathore himself. 

Know about the company’s finances, its strengths and the risks involved to stay informed beforehand of its IPO launch. 

Also Read: How does an IPO work?

About Company 

R & B Infra Project Ltd. is an Engineering, Procurement and Construction (EPC) company. The company was established about 2 decades back and has completed numerous infra projects successfully since 1994. 

The company has worked across many sectors such as Solid Waste Management, Storm Water Drains, Security Solutions (CCTV), Water Supply Projects, Building Construction and many more. Some of the clients of this company include government bodies such as Public Works Department- Maharashtra, Pune Municipal Corporation, Pimpri-Chichwad Municipal Corporation and Mumbai Metropolitan Region Development Authority. 

R & B Infra Project is the flagship company of the Rathore Group. Rathore Group has a yearly turnover of about Rs. 200 crore. The company’s objective is to serve everyone with exceptional solutions along with the finest quality services. 

Its revenue increased by 11.58% CAGR between the years 2020 and 2022 and its profit rose by 18.47% CAGR. The infrastructure company has completed 45 projects since it was incorporated totalling up to Rs. 1,05,427.68 lakh. It has an order book aggregating up to Rs. 1,78,645.28 crore. 

Company Financials 

Refer to the table below to get financial details about the company to assess how it has been performing so far: 

Parameters As Per the Year Ending	31 March 2022	31 March 2021	31 March 2020
Total Assets	20,771.47	20,874.15	21,227.76
Total Liabilities	11,398.39	12,693.93	14,000.60
Total Expenses	19,915.24	17,349.72	14,639.89
Total Revenue	21,518.95	18,670.45	15,633.41
Profit After Tax	1,192.11	953.81	716.98
EBITDA	2,598.00	2,618.41	2,201.46
Earnings Per Share (Basic and Diluted) *	8.08	6.47	4.86

*Values in millions except EPS 

Read Also: Suraj Estate Developers IPO

Strengths 

Here are some of the strengths of the company that have led to its success to date: 

• The company’s organiser has played a key role in the development of the business, benefiting it with his industry knowledge, expertise, vision and leadership. The company has seen significant growth under the leadership of its sole promoter, Ratansingh Rathod, who has over 25 years of experience in the construction and infrastructure industry. 
• The company is overseen by a team of competent professionals with expertise in key aspects of its business.
• Since its inception, the company has completed 45 projects with a total contract value of Rs. 1,05,427.68 crore. The company has an extensive fleet of modern construction equipment and motor vehicles, which allow it to efficiently complete multiple projects at the same time.
• The company has a history of more than 17 years, during which it has maintained profitability since its inception. Over the past three years, despite external challenges such as the COVID-19 pandemic and other disruptions, it has managed to achieve solid financial results. 
• Its revenue from operations has witnessed significant growth, rising from Rs. 15,312.84 in FY2020 to Rs. 18,497.75 in FY21 and further to Rs. 21,272.26 in FY20.

Risks Involved 

Along with many upsides, there are also a few risks involved which are integral parts of this type of business:

• The business is heavily dependent on economic and political factors in India and abroad. Factors such as macroeconomic policies, industry-specific trends, legislation, market fluctuations and consumer confidence can significantly affect this business.
• The company’s future growth faces risks associated with a rapid increase in the volume of orders and problems with retaining and recruiting qualified employees. This growth can place a strain on management and operations, necessitating continuous improvement of the company’s financial, operational and internal controls.

Also Read: Risk of investing in IPO

Summary 

R & B Infra Project IPO will consist of a fresh issuance of 35 lakh shares and an OFS of 15 lakh shares. The face value per equity share will be Rs. 10. The company aims to utilise its proceeds from the IPO to finance working capital requirements and other general corporate functions.

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