PE-backed BSCPL Infrastructure files for $120M IPO; New Vernon to part-exit

New Vernon Private Equity-backed BSCPL Infrastructure Ltd has filed its draft red herring prospectus (DRHP) with market regulator SEBI for a Rs 650-crore public issue. The issue involves a fresh issue of Rs 350 crore while the remaining Rs 300 crore will be used to give exit to PE investors.

Investors selling shares in the issue include New Vernon, Lehman Brothers, L&T Infrastructure Finance, Tiger Veda Bharat and Tatterstalls Ltd. Other PE investors in the company include Amansa Investments and IDFC, which along with all the investors hold 27-28 per cent stake in BSCPL.

JM Financial and Axis Capital are the book running lead managers to the issue.

These investors bought the stake for Rs 300 crore in two rounds of funding in 2006 and 2007 through preferential allotment and a secondary stake sale by promoters.

New Vernon was the first and the largest outside shareholder in the company with 11.41 per cent stake. Other shareholders are Tatterstalls (1.19 per cent), Tiger Veda (3.8 per cent), LB India Holdings Mauritius II (2.95 per cent), L&T Infrastructure Finance (4.22 per cent), IDFC (1.73 per cent) and Amansa (1.36 per cent).

Though the background of Tatterstalls and Tiger Veda could not be determined, they have the right to appoint one nominee along with New Vernon.

While BSCPL raised first round at Rs 352.5 per share, the second round was done at Rs 573 per share. The second round valued the company at Rs 1,424 crore.

BSCPL operates primarily in the construction and management of roads and highways projects both at engineering, procurement and construction (EPC) and build, operate and transfer (BOT) basis. It is also involved in railways, transmission lines and irrigation projects. BSCPL also has a real estate business where it is building residential projects both in India and Dubai.

BSCPL reported 38 per cent increase in total income to Rs 714 crore in FY12 with profit before tax of Rs 22.84 crore as compared to a loss of Rs 6.83 crore in FY11. For the first six months of FY13 ending September 2012, the company reported a total income Rs 544 crore with profit before tax of Rs 47.9 crore.

The Hyderabad-based company had an order book of Rs 3,882 crore as on December 31, 2012.

BSCPL will use Rs 130 crore from the issue for part funding of the construction and development of a BOT project on NH-6 in Chhattisgarh. Another Rs 150 crore will used for repayment or prepayment of an ICICI Bank loan.

(Edited by Prem Udayabhanu)

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