Likely to enhance liquidity and contractor’s ability to take up fresh projects. May 2020
Order book and utilisation plans: Our order book and the new orders that we receive have a significant effect on our future revenue. The company's order book as on January 31, 2017, was approximately Rs 4,049 crore. This includes commercial, residential and institutional buildings.
We work for a number of reputed clients and are associated with some marquee construction projects in India. Having joined hands with new, reputed companies, we also get repeat orders from existing clients.
Amount to be raised through IPO: We have filed the DRHP with SEBI. The contours are probably such that we will raise about Rs 400 crore, with all primary capital and no offer for sale (OFS). The utilisation has been divided into three parts: Rs 250 crore for funding working capital, about Rs 50 crore for funding purchase of capital assets capex (to increase the equipment and machinery bank), and balance for general corporate purposes and issue expenses. At present, we own equipment required throughout the lifetime of a project, that is, formwork, tower cranes, passenger and material hoists, concrete pumps and boom placers.
Current debt/equity ratio: Based on the restated consolidated financial statements, as on December 31, 2016, our debt equity ratio level is 0.59. There is no debt repayment proposed out of the IPO proceeds. The working capital will be utilised over the next two years. We would like to be adequately capitalised for all our requirements as we enter a new phase of growth from the next fiscal.
Credit enhancement: The net cash generated from operating activities for the nine months period ended December 31, 2016, on a restated consolidated basis, was Rs 44 crore.
Current business model and growth strategies: We provide end-to-end construction services for residential, commercial and institutional buildings, and will continue to remain focused on building construction. We intend to capitalise on the recent government initiatives such as 'Housing for All by 2022' by expanding in the mass housing segment and undertaking projects in the public sector. We intend to undertake projects to be executed on design-build basis. That's our strategy. Our revenue from operations for the nine months period ended December 31, 2016, on a consolidated basis, was about Rs 847 crore.
The revenue from operations grew at a CAGR (between March 31, 2014, to March 31, 2016) of 99.56 per cent.