The private sector EPC expert, Dilip Buildcon got a green signal from SEBI for raising funds through an Initial Public Offering (IPO). It is expected that they will raise a no less than Rs 430 crores through this approved IPO.
On February 1, 2016, Dilip Buildcon filed its Draft Red Herring Prospectus (DRHP) with SEBI and the latter approved it a month later, on March 10, 2016.
The proceedings that they would receive from the sale of freshly issued 11.36 lakh shares. This will be utilised to repay and pre-pay some part of the term loans and achieve their corporate aim. Dilip Suryavanshi and Devendra Jain along with the private equity fund, BanyanTree Growth Capital, hold the right over these shares as they are the promoters of the company. These funds will also be used to meet their working capital requirements in time.
One of the promoters of Dilip Suryavanshi said, “we were planning to raise funds for a very long time and the day SEBI gave a green signal to our proposed draft, we couldn’t be happier. We are looking forward to utilising the proceedings of this IPO and meet our corporate requirements.”
Dilip Buildcon is considered one of the best-in-class private sector Engineering Procurement and Construction (EPC) contractors of India, whose function areas are primarily focused on road construction.
Axis Capital Ltd, IIFL Holdings, JM Financial Institutional Securities and PNB Investment Services will be the book running lead managers to this Initial Public Offering.
The shares are also believed to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) as well.
This is the second time that company tried to hit the capital markets. This firm filed draft papers with the regulator in March last year, in order to raise Rs 650 crores through an IPO. After getting approvals from SEBI in June last year, the EPC expert withdrew the draft papers in January and filed fresh papers in February, for some undisclosed reasons.