Bhopal-based mid-size construction company Dilip Buildcon Ltd has refiled its draft red herring prospectus (DRHP) with Securities Exchange Board of India (SEBI) for its public issue. It has now cut the size of fresh issue of shares as well as the quantum of shares offered for sale by its existing private equity backer BanyanTree Growth Capital.
The firm is now looking to raise Rs 430 crore (approximately $63 million) through fresh issue of shares in its initial public offer (IPO) against the previous proposal where it sought to raise up to Rs 650 crore (then $104 million).
The company had first filed the documents with SEBI in April last year. Its existing investor BanyanTree Growth Capital was looking for a complete exit. Now, it has reduced the number of shares on offer to 7.95 million equity share against 11.4 million equity shares or entire 9.75 per cent stake it offered to divest earlier.
BanyanTree Growth Capital had invested Rs 75 crore to buy just under 10 per cent stake in the firm.
Besides, the company’s co promoters Dilip Suryavanshi and Devendra Jain have also cut the numbers of shares on offer to 1.13 million equity shares each compared with earlier proposal of 2.27 million and 1.22 million equity shares, respectively.
Incorporated in 1988, Dilip Buildcon provides engineering, procurement and construction services in India.
The core business of the Bhopal-based EPC firm is undertaking construction projects across India in the roads and irrigation sectors. The company specialises in constructing state and national highways, city roads, culverts and bridges.
The business comprises construction, under which it undertakes roads, irrigation and urban development projects on an EPC basis; and infrastructure development business, under which it undertakes building, operation and development of road projects on a BOT basis with a focus on annuity projects.
Axis Capital, IIFL Holdings Ltd, JM Financial Institutional Securities Ltd and PNB Investment Services are managing the public issue.