Dilip Buildcon lists at a premium

Dilip Buildcon has listed at a premium on the bourses. Shares as at 10 am on Aug 11 got listed at Rs 241, up by 10 percent. Company had fixed the price band for the issue between Rs 214 – 219 per share.  Company plans to utilise the net proceeds of the fresh issue for prepayment or scheduled repayment of a portion of the term loans and to meet working capital requirements and for general corporate purposes. Company has planned to raise Rs 650 crores, and saw a good response amongst the investors, subscribing more than 21 times to the issue price.

The company majorly has road construction projects under NHAI and State Highways, and the investment in these sectors is expected to grow in 5 years at a CAGR of 23 per cent and 11 per cent, respectively over FY20. The company's business segment derives its major share from NHAI (23.5 per cent) and state and central government (13.2 per cent). The company will benefit from ongoing EPC road projects, government’s focus on public infrastructure development and NHAI's plans to connect PAN India.

Company operates in two primary business verticals - construction (roads, irrigation and urban development projects contributed 92.7 percent to FY16 revenue); and infrastructure development (building, operation and development of road projects with a focus on annuity projects that accounted for 7.3 percent of FY16 revenue).