Road infra co PNC Infratech Limited Public Offer opens on 8th May 2015
With the backdrop of CRISIL Research
expecting investments in the roads sector to grow by 1.7 times to Rs. 7.3
trillion over the coming five years, road infra companies are back in the
spotlight. PNC Infratech Limited, an Indian
infrastructure construction, development and management company, proposes to open
on Friday, 8th May, 2015, a public issue sized around Rs. 488 crore
(upper end of the Price Band) at a Price Band of Rs. 355 to Rs. 378 per equity
share.
The Company has
executed or is executing projects across various states in India covering
Rajasthan, Punjab, Haryana, Uttarakhand, Uttar Pradesh, Delhi, Bihar, West
Bengal, Assam, Madhya Pradesh, Maharashtra, Karnataka and Tamil Nadu. Its major
clients include the NHAI, Airports Authority of India, Delhi State Industrial
and Infrastructure Development Corporation Limited, Uttar Pradesh Power
Corporation Limited, RITES Limited, Military Engineering Services, Uttar
Pradesh State Highway Authority, Uttar Pradesh Expressway Industrial
Development Authority, Haryana State Road Development Corporation, Dedicated
Freight Corridor Corporation of India Limited, MPRDCL and Public Works
Department, State Government of Uttar Pradesh.
PNC Infratech has
executed 42 major infrastructure projects on an EPC basis, acquiring experience
particularly in the timely execution of EPC contracts since its incorporation.
They have an established track record in executing large construction projects
particularly in the roads and highways and airport runways sectors. The
Company’s order book in terms of total value of contracts including escalation
was Rs. 7,849.7 crore as on March 31, 2015 up from Rs. 6,085.78 crore as on
March 31, 2014. It is executing 23 infrastructure projects across sectors as on
March 31, 2015. It is developing/operating 7 BOT projects and 1 OMT project,
comprising of both toll & annuity assets. It has a strong credit rating of
CARE A for Long Term and CARE A1 for short-term loans. There is a huge untapped
potential in the construction sector with 22% CAGR Envisaged in Infrastructure
Outlay in Coming 2 Years amounting to Rs. 12,856 bn (Rs. 12.86 lakh crore) in 2015-16 and Rs. 15,893 bn (Rs. 15.89 lakh
crore) in 2016-17. As per Budget 2015-16 proposal, investments for development
of National Highways is proposed to be hiked to Rs. 856 Billion for FY16.
Road construction
and airport runways remain the core business of the Company but it is looking
to grow in other segments too. PNC was awarded Kanpur Lucknow Ayodhya Road
project, an OMT project, which involves managing the operations, maintenance
and toll collection for a road stretch. It executed 17 airport runway projects
across India as on March 31st, 2015 and received ‘Super Special’ class
certification by Military Engineering Services. It bagged a DFC contract for
design, procurement and construction of track and track related works on
Mughalsarai - Sonnagar section of Dedicated Eastern Freight Corridor. It entered
into a MoU with POSCO for joint bidding in respect of dedicated freight
corridor and other infrastructure projects. It completed first of its kind
contract for area redevelopment and construction of the Industrial Estate of
Narela, New Delhi; awarded by Delhi State Industrial & Infrastructure
Development Corporation (DSIIDC) on BOT basis. The contract includes
maintenance and management of industrial estate of Narela for a period of
approximately 13 years.
PNC is amongst
the first companies in the space to receive a bonus from NHAI; awarded on early
completion of the four-laning road project of the Agra-Gwalior section of
National Highway 3 in Uttar Pradesh. It commenced collection of toll three
months earlier than the scheduled date of completion for the Gwalior-Bhind
MP/UP Border two-laning project. As on March 31st, 2015, 3,776 employees, out
of which 297 are engineers, 49 hold master’s degrees in business
administration, 14 are chartered accountants and one is a qualified company
secretary. SAP ERP system is under implementation for better monitoring,
controlling and evaluating the business of the company. It has 24x7 real time
monitoring system in place at their corporate office in Agra to enable
effective monitoring and controlling of toll operations for 2 projects. It owns
a large fleet of in-house equipments. Is prudent procurement process and
efficient project execution helped achieve early completion of certain projects
before the scheduled date of completion. It has an established track record of
timely/early completion of projects.
The Offer
comprises up to 12,921,708 Equity Shares of face value of Rs. 10 each (the “Equity
Shares”) including a share premium per Equity Share (the “Offer”). The Price
Band is fixed from Rs. 355 to Rs. 378 per Equity Share. The Offer comprises a fresh
issue to the public of up to 11,500,000 Equity Shares by the Company (the “Fresh
Issue”) and an Offer for Sale of up to 1,421,708 Equity Shares (the “Offer For
Sale”) by NYLIM JACOB BALLAS INDIA (FVCI) III LLC (THE “Selling Shareholder” or
“NYLIM JB”).
The Offer
includes a reservation of 50,000 Equity Shares for subscription by Eligible
Employees (the “Employee Reservation Portion”). The Offer less the Employee
Reservation Portion is referred to as the “Net Offer” aggregating up to
12,871,708 Equity Shares. The Bid/Offer closes on Tuesday, 12th May,
2015. The minimum Bid lot is 35 Equity Shares and in multiples of 35 Equity
Shares thereafter. The Net offer shall constitute at least 25% of the Post-Offer
Paid up Equity Share Capital of the Company.
The Equity Shares
offered through the Red Herring Prospectus are proposed to be listed on the NSE
and the BSE.
The Book Running
Lead Managers (the “BRLMs”) to the Offer are ICICI Securities Limited and IDFC
Securities Limited.
In the nine month
period ended December 31, 2014, the consolidated revenues were Rs. 13,263.71
million and consolidated PAT was Rs. 624.32 million. In fiscal 2014, the
consolidated revenues were Rs. 13,642.43 million and consolidated PAT was Rs.
519.69 million.
Disclaimer:
“PNC Infratech Limited is proposing, subject to receipt of requisite
approvals, market conditions and other considerations, an initial public
offering of its equity shares and has filed a Red Herring Prospectus with the
Registrar of Companies. The Red Herring Prospectus is available on the website
of the Securities and Exchange Board of India at www.sebi.gov.in and the websites of the Book
Running Lead Managers at www.icicisecurities.com
and www.idfccapital.com.
Investors should note that investment in equity shares involves a high
degree of risk and for details refer to the Red Herring Prospectus, including
the section titled “Risk Factors”.
For more information, please
contact : Annapoorni, Adfactors PR, 044 - 2829 7497
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