Dilip Buildcon makes decent debut, lists at Rs 240 on BSE, up 9.6%

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NEW DELHI: Dilip Buildcon on Thursday made a decent debut on BSE, with the scrip listing at Rs 240, recording a 9.58 per cent premium over its issue price of Rs 219 apiece.

At 10.03 am, the stock was trading at Rs 244.90, up 11.82 per cent.

The Rs 654-crore IPO, which ran between August 1 and August 3 had received 21 times subscription.

The portion set aside for qualified institutional buyers (QIBs) was subscribed 9.76 times, while non-institutional investors category received 79.64 times subscription and retail investors 2.35 times.

The company is into construction business. It undertakes roads, irrigation and urban development projects on an engineering procurement construction (EPC) basis. It is also into the infrastructure development business, under which it focuses on annuity-based projects on an operation and development (BOT) basis. Overall, it has 50 third party EPC road projects, six BOT road projects, three irrigation projects, one mining project, one cable-stayed bridge project and three urban development projects .

The company claims to be among the country’s largest employers in the construction industry, with 19,746 employees as of March 31, 2016. It boasts of a fleet of 7,345 vehicles and other construction equipment made by world’s leading suppliers such as Metso, Wirtgen, Vogele and Schwing Stettar.
Geography-wise, orders from outside of Madhya Pradesh has increased from 12.06 per cent of total order book in FY13 to 60.47 per cent of total order book in FY16.

The company has reported a compounded annual growth rate of 38.18 per cent in consolidated revenue over the five years to FY16. Even as it posted a standalone net profit of Rs 220 crore in FY16 which was better than Rs 146 crore reported for FY15, it was far lower than the Rs 251 crore profit it reported in FY13. Total expenditure has doubled since FY13, largely on account of a change in inventories of finished goods.