Infrastructure firm Dilip Buildcon has received market regulator Sebi’s approval to raise funds through an IPO for purchase of engineering equipment and meeting working capital requirements among others.
The company had filed its draft red herring prospectus (DRHP) with Sebi on March 30 this year.
Securities and Exchange Board of India (Sebi) has issued its final observations on the draft offer documents, which is necessary for companies to launch any public offer, according to sources.
As per the draft papers filed with Sebi, the IPO would comprise fresh issue of equity shares worth “up to Rs 6,500 million” and offer for sale of up to 1.49 crore equity shares by its existing shareholders.
The proceeds from the issue will be utilised towards the purchase of engineering equipment; prepayment or scheduled repayment of a portion of term loans availed by the company; to meet working capital requirements and general corporate purposes.
Axis Capital, Deutsche Equities India and PNB Investment Services are the book running lead managers to the issue.
The company has already received an ‘in-principle’ approval from the BSE and the NSE for the listing of equity shares.
Dilip Buildcon are one of the leading private sector road-focused EPC contractors in India.
The company had completed the construction of 47 road projects in Madhya Pradesh, Gujarat, Himachal Pradesh and Maharashtra, during the five financial year ended March 31, 2014 and the six months ended September 30, 2014.
In addition, the firm had expanded their presence to six more states including Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Uttar Pradesh and Rajasthan, with ongoing projects.