Bhopal-based construction company and road developer Dilip Buildcon Ltd. is raising Rs 649-654 crore through an initial public offering. The price band has been fixed at Rs 214-219 per share, valuing the company at around Rs 3,000 crore.
The IPO comprises of fresh issue of 1.96 crore shares amounting to Rs 430 crore and offer for sale of one crore shares, by existing promoters, Dilip Suryavanshi and Devendra Jain and private equity investor, BanyanTree Growth Capital. The offer for sale amounts to Rs 219-224 crore.
The company will use the proceeds from the issue to repay Rs 202 crore of debt and use Rs 200 crore for working capital requirements, Rohan Suryavanshi, head of strategy and planning for the company, told BloombergQuint. The company ended the financial year 2015-16 with a debt of Rs 3,639.5 crore.
The company is largely involved in undertaking Build, Operate and Transfer (BOT) projects. It has 18 BOT projects including six which are under construction. The company ended March 31, 2016 with a total order book of Rs 10,779 crore.
The company saw its revenue for the financial year 2015-16 rise to Rs 4,349 crore from Rs 2,762 crore and net profit of jump to Rs 196.6 crore from Rs 87.6 crore.
This is Dilip Buildcon's second attempt at an IPO. In its first attempt, it planned to raise Rs 630 crore through a fresh issue. However, this plan got shelved due to lack of investor interest, Suryavanshi said.
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