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Rakesh Jhunjhunwala, Beacon To Part Exit In A2Z IPO

30 July, 2010

Ace stock market investor Rakesh Jhunjhunwala is expected to make a windfall in his four year old investment in engineering, procurement and construction firm A2Z Maintenance & Engineering Services Ltd. Jhunjhunwala along with Beacon and few other promoter group individuals are selling part of their shares in the IPO.

Although valuations of the shares are yet to be fimed up, the company is eyeing to raise around Rs 750 crore just through fresh issue of shares. Assuming 25% odd stake dilution the valuation of the firm could be around Rs 3,000 crore.

Jhunjhunwala invested around Rs 21 crore and holds 21% stake. He invested with the company’s valuation at just about Rs 100 crore which means he could be eyeing almost 30x returns in the four year old investment. Beacon invested around Rs 87 crore three years ago and owns 12% pre issue.

A2Z had revenues of Rs 1,225 crore with net profit of Rs 98 crore for the year ended March’10. The firm plans to use the money raised through the issue for investment in three biomass (bagasse)-based power cogeneration projects of 15 MW each in Punjab besides investment in five biomass-based power generation projects of 15 MW each in the Rajasthan, repayment of a loan granted by L&T Infrastructure Finance besides working capital requirements.

The company is into EPC services for the power transmission and distribution sector with a focus primarily on the distribution segment. It is diversifying the business to provide EPC services to power generation companies and companies in other sectors, including road and telecommunications.

The issue is being managed by as many as five BRLMs including IDFC, BofA Merrill Lynch, Enam, ICICI Sec and SBI Caps. Yes Bank is the Co-BRLM to the issue.


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2 Comments
RK . 6 years ago

Very interesting valuation.

100 Cr about 4 years ago

About 700 Cr just after a year or about 3 years ago when Beacon invested.

3,000 Cr when it plans to go public with a trailing PE of 30!

Prashant Chandna . 6 years ago

I know this company from last 4 year,tremendous growth Mr.RK i hope you are Mr.R.K Aggarwal, you did a very good job…. as far as i’ve heard there is a great push to the company by you

Rakesh Jhunjhunwala, Beacon To Part Exit In A2Z IPO

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