Shradha Infraprojects Raises ₹121.5 Crore via Rights Issue – Growth, Comparison & Investor Guide
Shradha Infraprojects launches a rights issue at ₹40/share (3:5 ratio) to raise ~₹121.5 crore; strong margin performance in recent years and steady profits, but investors must weigh the risk of realestate & infra cyclicality.
Shradha Infraprojects’ rights issue offers 3 new shares for every 5 held at ₹40/share, record date 16 September 2025. The company aims to raise ~₹121.5 crore. With FY25 net profit ~₹22 crore, EPS ~₹3.40, and solid margins, read full financials and peer comparison to decide.
Company Overview
Shradha Infraprojects Limited is a real estate & infrastructure company engaged in the development of residential, commercial, retail, and social infrastructure projects. It also does civil construction work and real estate property development. Its focus is in Nagpur and nearby regions; it operates through both infrastructure & real estate verticals.
Rights Issue Details
Shradha Infraprojects launches a rights issue at ₹40/share (3:5 ratio) to raise ~₹121.5 crore. Here are the key facts about the Rights Issue:
| Parameter | Detail |
|---|---|
| Issue Price | ₹40 per rights share |
| Number of Shares Offered | 30,374,088 equity shares |
| Amount to be Raised | Up to ~ ₹121.50 Crores |
| Rights Ratio | 3:5 — for every 5 shares held, shareholder is entitled to 3 rights shares. |
| Record Date | 16 September 2025 |
| Subscription Period | From 24 September 2025 to 3 October 2025 |
| Rights Entitlements Trading | The rights entitlements (REs) are tradable on the exchange for a period (indicated) between trading start & last date of RE-trading: from 24 Sept to 29 Sept 2025. |
Company Financials
From consolidated data via Screener, Arihant and other sources:
| Metric | Value / Trend |
|---|---|
| Sales / Revenue (Consolidated) | ~ ₹107 Crores for FY25; slight decline in TTM to ~ ₹104 Crores. |
| Net Profit | ~ ₹22 Crores for FY25. |
| Operating Margin | ~ 20-27% in recent years; strong margin performance in last few years. |
| EPS (Trailing / TTM) | ~ ₹3.40 per share (post face value change) |
| Face Value | ₹2 per share (after subdivision) |
| Book Value / NAV etc. | Book value around ₹30.12; P/B ~ 1.99x; P/E ~ 17.66x based on recent share price. |
Comparison / Peer Analysis
Here’s how Shradha Infraprojects stacks up vs typical peers in the infra / real estate sector, based on what data is available:
| Parameter | Shradha Infraprojects | Peers (Real Estate / Infra) |
|---|---|---|
| Profit Margin & OPM | Strong margins (20-27%) in recent years. | Many peers have lower margins due to land costs, regulatory delays, etc. |
| EPS & Valuation | EPS ~₹3.40, P/E ~17-18x; P/B ~2x. | Some peers trade at higher P/E when growth is higher; others lower if risk is high. |
| Revenue Growth | Revenue was ~₹110 Crores in FY24, slight variation; stable but not explosive. | Peers with large land banks or major ongoing projects sometimes show steeper growth. |
| Leverage / Debt | Borrowings have been non-zero; company has liabilities but debt levels are moderate vs assets. | Some peers are more leveraged; real estate projects often require significant borrowings. |
Strengths & Risks
Strengths:
- The rights issue gives existing shareholders a chance to acquire more shares at a known discounted price.
- The Company has shown good operating margins in recent years.
- Stable profits and a relatively predictable business model in real estate/infrastructure.
- Face value reduction (subdivision) may help liquidity and trading.
Risks:
- Real estate & infrastructure are cyclical and subject to economic slowdown, regulatory delays, and cost escalation.
- A Rights issue dilutes equity unless fully subscribed by shareholders.
- Land acquisition, approvals, and project execution risk.
- Market sentiment is sensitive; if investors fear oversupply or low demand, share performance post-rights may suffer.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own. Investors are advised to consult certified financial advisors before making any investment decisions.)
