Ashoka Buildcon, engaged into toll-based BOT projects, has filed its DRHP with SEBI on 22/01/08 for an IPO of 81 lakh equity shares of Rs 10 each at a price to be decided through the book building route. The issue comprises a net issue to the public of 7,938,000 equity shares and a reservation of 1,62,000 equity shares to the employees of the company. The issue would constitute 15.05% of the post issue paid up capital of the company.
In 2006, IDFC Infrastructure Fund acquired 10.20 lakh equity shares in the company which made IDFC the single largest shareholder with 18.18% equity stake in the company.
The company proposes to list its shares on the BSE, NSE. The BRLMs to the issue are IDFC- SSKI, Enam Securities and Kotak Mahindra Capital.
The object of the issue is to raise funds to part finance the investments required by the company's subsidiary Ashoka Highway (Bhandara), formed for construction, operation and maintenance of 320 km (four lanes ) long road section of National Highway 6; investment in capital equipment; funding the company's subsidiaries for repayments of their loans and for general corporate purposes.
The company intends to use the proceeds from the issue to part finance the above mentioned project cost. Rs.125 crore will be invested in its subsidiary Ashoka Highway Bhandara; Rs 30 crore for capital equipment and Rs 73.11 crore for repayment of loans of the company's subsidiaries.
Headquartered in Nashik, Ashoka Buildcon Ltd. has operations reach across the states of Maharashtra, Madhya Pradesh, Chhattisgarh, Rajasthan, Gujarat, Goa and Tamil Nadu, the National Capital Territory of Delhi and the union territories of Dadra and Nagar Haveli and Daman and Diu. In addition to BOT projects, it also engineers and designs, procures the raw materials and equipment and constructs roads, bridges, commercial buildings, industrial buildings and institutional buildings for third parties.
It also manufactures and sells ready-mix concrete (RMC) and bitumen and collects tolls on roads and bridges owned and constructed by third parties. The business is organised into four divisions: the BOT division; the engineering, procurement and construction (EPC) division; the RMC and bitumen division; and the toll collection contract division. As at November 30, 2007, its order book totalled Rs 1,500 crore.
For the year ended 31st March 2007, the company posted an income of Rs 371.16 crore with net profit of Rs 14.74 crore as compared with an income of Rs 179.70 crore and net profit of Rs 8.59 crore for FY06. For 6 months ended September 30, 2007, the company's turnover was Rs 160.80 crores and net profit was Rs 10.48 crores.