Srinibas Pradhan Constructions Ltd. IPO

Srinibas Pradhan Constructions

• Srinibas Pradhan Constructions is coming out with an initial public offering (IPO) of 20,73,600 shares in a price band of Rs 91-98 per equity share.
• The issue will open on March 6, 2026 and will close on March 10, 2026.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 9.10 times of its face value on the lower side and 9.80 times on the higher side.
• Book running lead manager to the issue is Novus Capital Advisors.
• Compliance Officer for the issue is Surbhi Agrawal.

Profile of the company

The company is engaged in infrastructure development across various domains, with a primary focus on roads and highways, including rural, major district, and urban roads. It utilizes a range of materials such as aggregate, sand, tar, and cement to ensure durable and reliable construction. In addition to roads, it focuses on construction of bridges and steel structures, both for bridges and sheds. Its civil construction services encompass a wide spectrum, from foundations and superstructures to multi-storied structures, factories, and industrial facilities. 

The company engages in competitive bidding processes by participating in tenders/bids/quotations and complete the process for getting contracts/work orders for diverse projects in the State of Odisha, such as roads, bridges, irrigation & canals, civil, and industrial construction. The company operates in the State of Odisha and holds P.W.D. Contractors Registration Certificate as a ‘B’ Class contractor, enabling it to participate in tenders in the region. Additionally, its wholly-owned subsidiary holds P.W.D. Contractors Registration Certificate as an ‘A’ Class contractor, enabling it to participate in higher value tenders.

The company establishes on-site Civil Engineering laboratories, which play an important role in ensuring quality control measures throughout construction projects. The primary objective of its on-site Civil Engineering laboratories is conducting tests on various materials utilized in construction activities. These materials encompass a broad spectrum, including but not limited to bricks, asphalt, aggregate, and concrete. By subjecting these materials to testing protocols, it can gain valuable insights into their properties, strength, and suitability for specific project requirements.

Proceed is being used for:

• Funding the working capital requirements of the company
• Repayment of portion of loan availed by the company
• General corporate purpose
• Issue related expenses

Industry overview

The infrastructure sector is a key driver of the Indian economy. The sector is highly responsible for propelling India’s overall development and enjoys intense focus from the Government for initiating policies that would ensure the time-bound creation of world-class infrastructure in the country. The infrastructure sector includes power, bridges, dams, roads, and urban infrastructure development. In other words, the infrastructure sector acts as a catalyst for India’s economic growth as it drives the growth of the allied sectors like townships, housing, built-up infrastructure, and construction development projects.

To meet India’s aim of reaching a $5 trillion economy by 2025, infrastructure development is the need of the hour. The government has launched the National Infrastructure Pipeline (NIP) combined with other initiatives such as Make in India and the production-linked incentives (PLI) scheme to augment the growth of the infrastructure sector. Historically, more than 80% of the country's infrastructure spending has gone toward funding for transportation, electricity, and water, and irrigation.

India, it is estimated, needs to invest $840 billion over the next 15 years into urban infrastructure to meet the needs of its fast-growing population. This investment will only be rational as well as sustainable, if it additionally focuses on long-term maintenance and strength of its buildings, bridges, ports and airports. The Indian infrastructure sector is experiencing significant growth, driven by increased public and private investment, as well as government initiatives like PM Gati Shakti. This growth is likely to continue in the coming future as the government placed infrastructure development at the center stage of its fiscal and public policy agenda.

Pros and strengths

Experienced workforce: The backbone of the company lies in its team of experienced engineers. These professionals bring not only technical expertise but also a wealth of practical knowledge to project execution. Their proficiency ensures that projects are handled with precision and attention to detail, leading to a high standard of workmanship.

Strong backward integration: Its core strategy hinges on the establishment of formidable backward integrations, specifically tailored to source vital materials such as bricks, sand, and various construction supplies. These integrations serve as the bedrock of its supply chain, fortifying it against disruptions while concurrently enabling it to uphold competitive pricing models without the slightest compromise on quality.

Diverse portfolio: The company's ability to undertake a diverse range of projects, from small-scale initiatives to roads, bridges, dams and multi-storied buildings, demonstrates adaptability and competence. This diversity positions the company to explore various segments within the construction and infrastructure industry.

Risks and concerns

Business fully dependent on government projects in Odisha: Its business operations are focused primarily in the State of Odisha. It relies heavily on projects undertaken or awarded within Odisha, by entities such as the local authorities, municipal bodies, and other organizations operating in the state. As a result, its revenue streams are derived entirely from contracts with a limited number of entities, exposing it to risks arising from economic, regulatory, and other changes specific to Odisha. For the period ending September 30, 2025 and for Fiscal 2025, Fiscal 2024 and Fiscal 2023, its projects in Odisha contributed to Rs 4558.70 lakh, Rs 8,968.47 lakh, Rs 3,526.94 lakh and Rs 2,634.88 lakh, which is 100% of its total revenue from operations in each fiscal year. Any adverse changes in central or state government policies could potentially lead to foreclosure, termination, restructuring, or renegotiation of its contracts. Such developments could significantly impact its business operations and financial results.

Dependent on limited number of key suppliers: The company is dependent on few suppliers for purchase. Its top ten suppliers contribute more than 40.87%, 43.58%,47.35% and 53.25% respectively of its total purchases for the year ended on March 31, 2025, 2024 ,2023 and for the period ended September 30, 2025 respectively. It cannot assure that it will be able to get the same quantum and quality of supplies, or any supplies at all, and the loss of supplies from one or more of them may adversely affect its purchases and ultimately its revenue and results of operations.

Rising construction and operating costs could impact profitability: Increases in construction and operating expenses such as raw materials, machine hire charges, site expenses, fuel, labour, repair & maintenance of machinery could have an adverse effect on its business, results of operations and financial condition. During the fiscal years ending March 31, 2025, March 31, 2024, March 31, 2023 and for the period ended September 30, 2025 the construction and operating expenses which inter alia includes raw materials, machine hire charges, site expenses, fuel, labour, repair & maintenance of machinery, constituted 87.83%, 98.40%, 97.13% and 80.01% of its total expenses, respectively. Additionally, during these fiscal years and for the period ended September 30, 2025, expenditure on construction and operating expenses amounted to Rs 7,107.38 lakh, Rs 3,003.39 lakh, Rs 2,367.19 lakh and Rs 3,205.92 lakh respectively.

Outlook

Srinibas Pradhan Constructions is engaged in infrastructure development across various domains. The core business of the company is the provision of construction services. As experts in the field, the company undertakes a wide range of construction projects, contributing to the growth and development of infrastructure and real estate in India. The company primarily caters to the needs of Indian Market. On the concern side, its business is capital intensive because of which it may experience insufficient cash flows to meet required payments on its debt and working capital requirements, there may be an adverse effect on the results of its operations. The infrastructure sector is competitive and highly fragmented. it competes against various domestic engineering, construction and infrastructure companies for infrastructure projects. Some of its competitors may have larger financial resources or access to lower cost funds, or may have stronger engineering or technical capabilities in executing complex projects, or projects with certain specifications or in certain geographies. They may also benefit from greater economies of scale and operating efficiencies. Failure to compete successfully against current or future competitors could harm its business, operating cash flows and financial condition. 

The company is coming out with a maiden IPO of 20,73,600 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 91-98 per equity share. The aggregate size of the offer is around Rs 18.87 crore to Rs 20.32 crore based on lower and upper price band respectively. On performance front, in FY 2024-25, the company recorded revenue from operations of Rs 8,968.47 lakh, compared to Rs 3,526.94 lakh in FY 2023-24. This represents an increase of around 154.28% compared to the previous financial year. Its profit for the period, increased by 85.58% to Rs 658.62 lakh in FY 2024-25 from Rs 354.89 lakh in Fiscal 2023-2024.

Going forward, the company will focus on completing high-value projects that enhance its qualifications to secure high-value projects and maintain its competitive edge in government contracts. By doing so, it will increase and maintain its pre-qualification criteria, enabling it to bid for and win more substantial and impactful government projects. Additionally, it plans to extend its operations beyond the State of Odisha to drive growth and reduce regional dependency. This geographical expansion will allow it to access new markets, increase its market share, and capitalize on diverse business opportunities across different regions.