Rudra Gas Enterprise LTD

Rudra Gas Enterprise Limited, established in 2015, operates in the gas distribution, fibre cable networks, and construction equipment rental sectors. With over 50 completed projects and a total value of approximately INR 127.08 crore, the company has demonstrated reliability in resource transportation and telecommunications. Its core business verticals include gas pipeline projects, fibre optic cable projects, and the rental of construction machinery and vehicles.

The Rudra Gas Enterprise IPO, scheduled from February 8 to February 12, 2024, offers shares at a fixed price of Rs.63 per share. The total issue size amounts to Rs.14.16 crore, with allocations reserved for institutional, non-institutional, and retail investors. The company's financial performance in FY23 showed significant growth compared to FY22, with notable contributions from Gujarat, Uttar Pradesh, Telangana, and Punjab.

The IPO's objectives include meeting working capital requirements and general corporate purposes. The promoters, Mrs Manjulaben Sureshbhai Patel, Mr Kush Sureshbhai Patel, and Mr Kashyap Sureshbhai Patel, hold 99.99% pre-issue and 73.03% post-issue shareholding. Beeline Capital Advisors Pvt Ltd serves as the lead manager for the IPO.

Strengths of Rudra Gas Enterprise include experienced leadership, repeat orders from major clients, compliance with safety protocols, and focus on client relationships and operational efficiency. However, weaknesses such as legal proceedings, dependency on non-owned premises and suppliers, limited customer base, and past net losses pose challenges.

The IPO's valuation, with a P/E ratio range of 9.39x to 12.89x, appears undervalued compared to the industry average of 15.43x. As of the latest information, the IPO's Grey Market Premium (GMP) stands at Rs.25. In conclusion, Rudra Gas Enterprise Limited's diverse business segments, financial growth, and attractive valuation make it a compelling investment opportunity in the infrastructure sector.

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