IPO Analysis:IRB Infrastructure Developers Opens Jan 31st

28 Jan

Posted by Shyam as IPO Watch

IRB Infrastructure Developers is basically a Mumbai based infrastructure developer and construction player which is coming out with its initial public offering (IPO) which starts on Jan 31st and closes on Feb 5th.The company is bring 51 million shares of Rs 10 each. The price band has been decided at Rs 185-220 and at the upper end it can accumulate Rs 1123 crore and at the lower end Rs 945 crores.

The money raised will be used in pre-payment and payment of existing loans and investment in subsidiaries and meeting general expenses.70% of the issue proceeds will be spent in these loans payment of its various subsidiaries.

It has some BOT(build -operate-transfer) projects which it conducts through its subsidiaries and SPVs(special purpose vehilces).The group basically deals in Highway and BOT projects. It is currently undertaking 12 BOT projects in roads and highways.It is also having some plans to procure lands to construct integrated townships in Pune region.

Out of the 12 BOT projects 11 are in operational phase.Recently it has also bagged a project to develop the 260 km long Dahisar-Surat section of NH8.It is the biggest project bagged by the company in recent times and will add to the revenues in Fy09.It has 925 acres in Pune and planning to accquire another 475 acres for its proposed township.

The company eported a net profit of Rs 36 crores in the first 5 months of Fy08.Its revenue for the current year stands at Rs 285 crores.The company has an order book of RS 2300 crore as on October 31st,’07.Meanwhile the issue has been rated 4 out of 5 by Fitch rating India pvt limited,which indicates above average fundamenatsl for company.

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