Tuesday, September 13, 2011

Prakash Constrowell IPO

Prakash Constrowell, a Nasik based company engaged in infrastructure development and civil construction business, is entering the capital markets with an IPO of Rs 60 crore through 100% book building process. The company operates in the three segments of construction namely infrastructure development, civil construction and residential and commercial real estate construction. The company registered as Class 1A contractor with the Public Works Department of Maharashtra Government has executed many projects for the government and semi-government agencies. The company has successfully completed number of projects awarded by government and semi-government bodies, Build, Operate & Transfer (BOT) project by way of Public-Private Partnership (PPP) model.

Prakash Constrowell IPO shall open on September 19 and shall close on September 21. The company has fixed the price band of the issue at Rs 130 to Rs 138 per share.

Prakash Constrowell proposes to utilise the net proceeds of the issue to meet working capital requirement, investment in construction equipments and investment in subsidiaries.

As of June 30, 2011, Prakash Constrowell's order book was Rs 150.81 crore and is spread across the construction sectors in which it operates. The company's income from operations on a consolidated basis as per the restated financials has grown from Rs 26.40 crore in the year 2007-08 to Rs 126.91 crore in the year 2010-11, registering a compounded annual growth rate of 68.77% over the period of past four financial years. Its profit after tax on a consolidated basis has grown from Rs 3.06 crore in the year 2007-08 to Rs 10.65 crore in the year 2010-11, a compounded annual growth rate of 51.47%.

Intensive Fiscal Services Pvt Ltd is the sole Book Running Lead Manager to the issue and Bigshare Services Private Limited is the Registrar to the issue.

The equity shares of the company are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Recommendation:
CARE has assigned grade 2 to the IPO indicating below average fundamentals. We would not recommend this IPO to investors with so much volatility in the markets.

Subscription:
Prakash Constrowell IPO managed to get subscribed by 2.21 times at the close of the IPO.

At the close of the IPO,
QII segment got subscribed by 0.31 times
NII segment got subscribed by 2.76 times
Retail segment got subscribed by 4.68 times

Allotment:
Click here to check Prakash Constrowell IPO Allotment status!

Listing:
Prakash Constrowell got listed on 4 October, 2011. The share got listed at Rs 145 on the BSE against the issue price of Rs 138 per share. The share saw an intra-day low of Rs 112.25 and intra-day high of Rs 245 before closing the day at Rs 230, a 66% increase over the issue price.