BSCPL Infrastructure To Float IPO

Hyderabad-based BSCPL Infrastructure (BSCPL) is soon coming out with an IPO to get listed on the BSE and NSE. The company has so far not disclosed the total issue size, issue price and the bid lot size for this offering. This public issue constitutes of a fresh issue of Rs 350 crore as well as an offer for sale (OFS) issue of Rs 300 crore, totaling to Rs 650 crore. The public offering will be based on the book building method. The book running lead managers for the offering are JM Finance Institutional Securities and Axis Capital. At present, the company has 2.49 crore equity shares.

The infrastructure company BSCPL mainly operates in three areas of business – construction, development and real estate development. Its core area of focus is the roads and highways construction business, in which it also provides engineering, procurement and construction services on a fixed-sum turnkey basis.

The company has also developed many projects related with airports, runways, railways, transmission lines, irrigation, etc. In its development business segment, the company constructs road projects on a build-operate-transfer (BOT) basis, whereby it develops the road project, operates them on a concession period and finally transfers it to the NHAI.

In its real estate business segment, BSCPL develops residential building projects in India and Dubai.

It operates its construction business with in joint venture with its partners. It has two subsidiary companies, BSCPL Infra Projects (BIPL) and BSCPL International FZE, UAE, as well as a joint venture company, BSC-C & C (JV) Nepal. Other joint venture companies of BSCPL are SOMA BSCPL, SCL BSCPL, etc.

As of December 31, 2012, BSCPL had 21 construction business projects in hand. Its order book aggregates to Rs 3882.19 crore, of which Rs 3526.90 crore are for road projects, construction of railway projects, transmission, etc. The company has Rs 224.31 crore of irrigation projects and Rs 130.98 crore of building construction projects. Currently, it has two ongoing real estate projects, Bollineni Hillside project at Chennai and Arena Apartment project of approximately 53,035.94 sq. ft. at Dubai.

Further, on the financial front, BSCPL posted a strong performance in the H1FY13 period. The net revenue from operations is Rs 531.75 crore, whereas the bottomline grew to Rs 57.17 core in the similar period. Its EBITDA rose to Rs 133.15 crore in H1FY13 against Rs 189.47 crore in FY12.

The fresh issue proceeds are intended to be utilised for investment in its subsidiaries, for partial or full repayment of loan from ICICI and to meet the general corporate expenses. The company proposes to invest the fund in the BSCPL Aurang Tollway to finance the construction and development of the Aurang Road Project. This subsidiary was incorporated on September 2011, in which BSCPL holds 51% directly and 49% through its wholly-owned subsidiary BIPL.

The company has long experience in the field of construction and a sizeable order book of projects. Though it has a vanila business, it has posted strong financial performance in the H1FY13 period. However, the company has not disclosed the issue price and issue size for this public offering. Keep watching this space for more details.