Technocraft Ventures IPO: GMP at 17%; analysts share listing-day strategy

Technocraft Ventures IPO GMP: Technocraft Ventures shares may deliver a decent listing gain, with the latest grey market premium hovering at 17 per cent.

Technocraft Ventures IPO GMP today: Shares of infrastructure company Technocraft Ventures could deliver a decent listing gain on Friday (August 14), with the latest grey market trends pointing to a positive debut. The share will list on the bourses at 10 AM.

 

As of 1:45 PM, the shares were trading at ₹249 in the unlisted market, reflecting a premium of ₹37, or 17.45 per cent, over the IPO issue price of ₹212.

 

The company had fixed a price band of ₹200-212 per share for the issue, which fetched 38.69 times subscription. The quota for non-institutional investors was subscribed 65.06 times. The category for Qualified Institutional Buyers (QIBs) received 42.26 times subscription, and the retail investors portion was subscribed 25.35 times.

 

 

The ₹251.88 crore IPO is a combination of a fresh issue of up to 95.05 lakh equity shares and an offer for sale (OFS) of up to 23.76 lakh shares by promoter Kartikey Constructions.

 

Mahesh M Ojha, VP - research & business development, Kantilal Chhaganlal Securities, said that the company benefits from a diversified order book, expanding geographical presence and integrated EPC capabilities, providing reasonable visibility for long-term growth. 

 

At the upper price band, the IPO is valued at 19.4x FY26 annualised EPS of ₹14.39, which appears reasonable given the company’s growth prospects and sector tailwinds, although valuation needs to be assessed against listed EPC peers.

 

Short-term investors, he said, "may consider booking profits on listing. Investors with a medium to long-term horizon may continue to hold, given the favourable infrastructure outlook and execution visibility."

 

Fresh investors should ideally wait for post-listing price stabilization and better entry opportunities rather than chasing the stock on listing day, he added.

 

Market expert Avinash Gorakshakar said that the company has an unexecuted order book of around ₹1,320 crore, which represents over 3.5x FY26 revenue, driven by public utility and infrastructure schemes (Jal Jeevan Mission, AMRUT, Namami Gange). 

 

"Investors should expect a moderate listing of around 10-15 per cent. Investors who can hold on for the next 12 to 15 months will benefit significantly as the company is expected to deliver a strong performance in FY27 going ahead," he said.  "The company is poised for future growth with incoming working capital and it can make a good run post listing. Investors can hold this counter for good returns in short to medium term," Rahul Sharma, head of research at Equity99, said. 

 

Of the fresh issue proceeds, the company has said that ₹150 crore will be used to fund the working capital requirements, while the remaining amount will be utilised for general corporate purposes and offer-related expenses.

 

Incorporated in 1998, Technocraft Ventures is an engineering, procurement and construction (EPC) company engaged in public infrastructure projects. Its operations span water and wastewater infrastructure, roads and highways, electrical transmission, urban infrastructure, and operation and maintenance of public utilities. 

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