Mumbai : Last August, Bhopal- based Dilip Buildcon was expected to launch its IPO (Initial Public Offering) but after much delay it has finally decided to open it on 1st August. The delay was mainly due to the market sentiments towards the sector. At a price band of Rs. 214 – Rs. 219 per equity share, the company is issuing fresh issue equity shares aggregating up to Rs. 4,300 million. The closing date of the issue is 3rd August. Through this IPO, the company is looking at paying off its debt and to meet working capital requirements.
Rohan Suryavanshi, head of strategy and planning at the company said, “We were determined to go ahead with the IPO. But the timing of the IPO (in August) last year was a bad timing. The world market was choppy and adding to it was China’s condition. These conditions were not in our hands. So, we decide to rather wait and evaluate the market.” He further added that with good monsoon, growth in their revenue and increase in government activity, the company took the cue to go ahead with the IPO. Additionally, the latest market sentiment is very positive as there has been a healthy growth in the recent issued IPOs, said Suryavanshi.
Suryavanshi added the company witnessed a growth of 60% y-o-y from Rs. 2,600 crore to Rs. 4,000 crore this year. In last two years, the government has spent Rs. 1,000 crore in acquiring technology for the company needs as the construction firm does not believe in depending on sub-contracts for their needs. This was part of the company’s strategy to grow.
He also added that 2012-2013 were challenging years for the company but increase in government activities in recent times, supported the growth of the company. The CEO and director of the company, Devendra Jain also added that apart from Madhya Pradesh, the company is strongly present in Andhra Pradesh and Punjab.
In total, the company is present across 12 states and is also working closely in southern states like Telangana, Tamil Nadu and Karnataka to name a few.