Dilip Buildcon to raise Rs 430 crore through IPO

Infrastructure company Dilip Buildcon plans to raise over Rs 430 crore through initial public offer and offer for sale, which will be primarily used to retire its debt and fund working capital requirements.
The issue, with a price band of Rs 214 and Rs 219 per share with a face value of Rs 10, will open on August 1 and close on August 3.
The Bhopal-based company is offering a fresh issue of 1,02,27,273 equity shares held by promoters Dilip Suryavanshi, Devendra Jain and BanyanTree Growth Capital aggregating up to Rs 430 crore.
"We will be utilising the proceeds of the issue to repay our debt which is around Rs 2,500 crore on standalone basis and also to meet our working capital requirements," Head of Strategy and Planning Rohan Suryavanshi told reporters here today.

DBL, which is primarily engaged in construction of roads and highways, has an orderbook of almost 8,000 km worth over Rs 11,000 crore to be executed over the next 2.5 years.
The company has also planned for offer for sale (OFS) aggregating up to 1,02,27,273 shares valued at around Rs 224 crore. However, DBL will not receive any proceeds from OFS.

Earlier, the company had proposed to raise Rs 650 crore through the IPO. However, since the issue was delayed for over a year, DBL reduced the issue size to Rs 430 crore, Suryavanshi said.
"Since we had to delay our IPO due to various reasons, including poor market conditions, we had to raise capital to meet our capital (need) and working expenses through debt. Therefore, we have now reduced the size of our IPO to that extent," he added.

Apart from constructing roads, the company has also undertaken projects in the irrigation and urban development sectors.
DBL, which is currently present in 14 states, including Punjab, Haryana, Uttar Pradesh, Rajasthan, Madhya Pradesh, Chhattisgarh, Jharkhand, Andhra Pradesh, Telangana, Karnataka Tamil Nadu, Gujarat, Himachal Pradesh and Maharashtra, is eyeing some more projects being bid out by the states as well as the National Highways Authority of India (NHAI).
The lead managers for the issue are Axis Capital, IIFL Holdings, JM Financial Institutional Securities and PNB Investment Services.