Fresh issue of Equity Shares aggregating up to Rs 4,300 million
Offer for sale aggregating up to 10,227,273 equity shares
The minimum Bid lot is 65 equity shares and in multiples of 65 equity shares thereafter
Bhopal-based Dilip Buildcon, a private sector road-focused EPC contractor in India will be launching its initial public offering (“IPO” or the “Issue”) which is scheduled to open on August 1, 2016 and close on August 3, 2016, with a price band of Rs 214 – Rs 219 per Equity Share of face value of Rs 10 each of the Company (the “Equity Shares”). The Anchor Investor Bid or Issue Period shall be July 29, 2016, being one working day prior to the Issue opening date
Dilip Buildcon, one of India’s leading EPC companies, is building roads, bridges, dams, canals, water supply etc. worth Rs 17,530 crore, across 12 states. Each project is executed by the company’s workforce of over 19,476 employees using a large fleet of over 7,345 modern construction equipment. Owing to its unique strategy and focused approach the company has grown from Rs 1,192 crore in 2012 to Rs 4349 crore in 2016.
The IPO comprises fresh issue Equity Shares aggregating up to Rs 4,300 million and an offer for sale of up to 1,136,364 Equity Shares by Dilip Suryavanshi, up to 1,136,364 Equity Shares by Devendra Jain and up to 7,954,545 Equity Shares by the BanyanTree Growth Capital, LLC.
The Company proposes to utilise the net proceeds of the Fresh Issue for prepayment or scheduled repayment of a portion of term loans availed by the company, to meet working capital requirements and general corporate purposes. The company will not receive any proceeds from the Offer for Sale.
The Issue is being made through the Book Building Process in accordance with Regulation 26(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 (“SEBI Regulations”) wherein not more than 50% of the Issue shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (the “QIB Portion”), provided that our Company and the Selling Shareholders, in consultation with the BRLMs, may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis. One-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. 5% of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Issue Price.
Further, not less than 15% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Issue shall be available for allocation to Retail Individual Bidders in accordance with the SEBI Regulations, subject to valid Bids being received at or above the Issue Price. All potential Bidders, other than Anchor Investors, are required mandatorily to utilise the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective bank accounts which will be blocked by the Self Certified Syndicate Banks (“SCSBs”) to participate in the Issue.
Axis Capital Ltd, IIFL Holdings Ltd, JM Financial Institutional Securities Ltd (formerly JM Financial Institutional Securities Private Limited) and PNB Investment Services Ltd are the Book Running Lead Managers (“BRLMs”) to the Issue. The Registrar to the Issue is Link Intime India Pvt Ltd.