BanyanTree-backed Dilip Buildcon seeks $445 mn valuation via IPO

Construction company Dilip Buildcon Ltd is targeting a valuation of about Rs 3,000 crore ($445 million) through an initial public offering that opens next week.

The company has fixed a price band of Rs 214-219 a share for the IPO, it said in a statement. The IPO comprises a fresh issue to raise Rs 430 crore and an offer for sale of about 10.23 million shares. The issue opens on August 1 and closes on August 3.

Dilip Buildcon is among several infrastructure companies selling or planning to sell shares for the first time. Among others, GR Infraprojects Ltd has picked bankers for its planned IPO while GVR Infra Projects Ltd is in the queue to float a public issue. 

Sadbhav Infrastructure Project Ltd, PNC Infratech Ltd and MEP Infrastructure Developers Ltd are among the infrastructure companies that have launched IPOs over the past year or so.

Bhopal-based Dilip Buildcon had initially filed its draft red herring prospectus with the capital markets regulator Securities and Exchange Board of India (SEBI) in April last year. 

At the time, it sought to raise up to Rs 650 crore (then $104 million) via a fresh issue. The company's private equity backer BanyanTree  Growth Capital was then looking for a complete exit by selling about 11.4 million shares, or a stake of around 9.75%. BanyanTree had invested Rs 75 crore to buy just under 10% stake in the firm. 

The company refiled its IPO documents with SEBI in February and cut the size of the fresh issue as well as the quantum of shares offered for sale by BanyanTree. It received SEBI approval for the revised proposal in March.

The offer now comprises an offer for sale of 1.13 million shares by the company's promoters Dilip Suryavanshi and Devendra Jain, and 7.95 million shares by BanyanTree.

The company will use the proceeds of the fresh share issue to repay loans, meet working capital requirements and for other corporate purposes. 

Incorporated in 1988, Dilip Buildcon provides engineering, procurement and construction services in the roads and irrigation sectors. 

Axis Capital Ltd, IIFL Holdings, JM Financial Institutional Securities and PNB Investment Services are managing the issue. 

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