IRCON International Limited IPO
(A) History and Business of the IRCON International
(i) Ircon International Limited (IRCON), is a Mini Ratna government company incorporated by Central Government (Ministry of Railways) under the Companies Act, 1956 on 28th April, 1976 originally under the name Indian Railway Construction Company Limited, IRCON has widespread operations in several States in India and in other countries(Malaysia, Nepal, Bangladesh, Mozambique, Ethiopia, Afganistan, U.K. Algeria & Sri Lanka Now.
(ii) The Company has a long-standing reputation as a sectoral leader in Transportation Infrastructure amongst the public sector construction companies in the Country with specialization in the execution of Railway Projects on the turnkey basis or otherwise. The Company is known for its quality, commitment, and consistency in terms of its performance. After commencing business as a railway construction company it diversified progressively since 1985 to roads, buildings, electrical sub-station and distribution, airport construction, commercial complexes, as well as to metro works.
(iii) As a construction organization, the Company operates in the entire spectrum of construction activities and infrastructure services; Railways and highway Construction, Tunnels & Bridges, Railway Workshops, EHP sub-station (engineering and constructions) and MRTS being the core competency areas.
(iv) The Company has so far completed more than 120 projects in more than 24 countries across the globe, and 376 projects in India.
(B) Opportunities Ahead
(i)Railways– The main focus area of Railways would be modernization and up-gradation of identified corridors, commissioning of new railway lines doubling of about 3500 km, re-development of about 400 railway stations, feeding of about 700 railway stations with solar power, etc. High-Speed Rail Corporation set up by Indian Railways for implementing Mumbai-Ahmedabad high-speed rail corridor under Japanese funding may also afford business opportunities in the railway sector.
(ii) Roads– Development of national highways under NHDP, improvement of road connectivity in left-wing extremism affected areas, special accelerated Road Development Programme for North-Eastern Region (SARDP-NE),National Highway Inter-connectivity Improvement Programme (NHIIP), improvement in the efficiency of National Corridors development of economic corridors/feeder routes, rural roads under PMGSY, Bharatmala programme to develop road connectivity to Border areas, the emphasis would also be on the development of roads for coastal connectivity including road connectivity for non-major ports.
(iii) Electrical Projects– Indian Railways has decided to electrify 24,400 km track by 2020-21 under ‘Mission Electrification’. Ircon has also been awarded the electrification work of ‘MathuraKasganj -Kalyanpur’ and ‘Katni-Singrauli’ at an estimated cost of Rs. 305.90 crore and Rs. 258.36 crore respectively.
(iv) International arena opportunities exist in countries like Malaysia, Bangladesh, Bhutan, Sri Lanka, and Iran.
(C) Present Projects in the Kitty
(i) Presently, Ircon is executing construction of railway line in J&K, Sivok-Rangpo, Jayanagar (India) to Bijalpura (Nepal).Jogbani to Biratnagar, etc.
(ii) The setting of new rail coach factory at Rae Bareli.
(iii) Doubling projects for Katni Singrauli; Rampur Dumra Tal Rajendrapul, Kiul-Gaya, and Hajipur Bachwara; Akhaura-Agartala Rail Link projects.
(iv) Setting up of three electric loco sheds at Bondamunda, Daund, and Mughalsarai; Road over Bridges in Jharkhand under Pradhan Mantri Gram Sadak Yojna (PMGSY).
(v) Design and Construction of Civil, Building and Track Works of Vaitarna-Sachin section and JNPT Vaitrana Section of DFC project.
(vi) Construction of Railway Siding at Nagarnar, in Chhattisgarh and for Darlipali Super Thermal Power project.
(vii) Electrical works under RAPDRP-Part B Project in the State of Jammu & Kashmir and Uttar Pradesh.
(viii) Design, Supply, Installation etc. of receiving-cum-traction and auxiliary main sub-station; Metro works for Delhi.
(D) Sectorial Performance of IRCON
(i) A sector-wise comparative position for the last three years is given below:
(ii) Contribution of foreign projects to total income:
(E) Interaction with Management by Bloomberg Quint
Objects of the IRCON International Limited IPO:
IRCON International Limited IPO Details:
|Open Date:||Sep 17 2018|
|Close Date:||Sep 19 2018|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Book Built Issue IPO|
|Issue Size:||466.70 Cr.|
|Lot Size:||30 Shares|
|Issue Price:||₹ 470-475 Per Equity Share|
|Listing Date:||Sep 28 2018|
Promoters And Management:
Promoters of IRCON IPO are: Our Promoter is the President of India acting through the Ministry of Railways. Our Promoter, along with its nominees, currently holds 99.71% of the pre-Offer paid-up equity share capital of our Company. After this Offer, our Promoter shall hold 89.18% of the post Offer paid-up equity share capital of our Company.
|(i) Authorized Share Capital (400,000,000 shares at FV@10)||400 Cr|
|(ii) Issued, Subscribed,& Paid-up Share Capital Before Issue (94,051,574 Shares at FV@10)||94.051 Cr|
|(iii) Present Issue OFS to public[12%] ( 9,905,157 Shares at FV@10)||10.5% of Paid up capital|
|(iv) Present Issue OFS to Employees (500,000 Shares at FV@10)||.531% of Paid up capital|
|(v) Reservation for QIB (4702578 Shares at FV@10)||50%|
|(vi) Reservation for HNI (1410773 hares at FV@10)||15%|
|(vii) Reservation for Retail (3291804 Shares at FV@10)||35%|
|(viii) Paid Up Share Capital after the issue||94.051 Cr|
Financials of IRCON International Limited IPO:
|1. Assets and Liabilities Key Parameters|
|Year||Asset(Cr)||Liabilities(Cr)||Net Worth(Cr)||Book Value||Liability/Equity||RONW||debtor days|
|2. Profit n Loss Key Parameters|
|Year||Revenue(Cr)||PAT(Cr)||EBITDA Margins||Profit Margins||Outstanding Shares( Cr)||EPS|
|3. Cash Flow Statement(all figures in Cr)|
|(i) Net Cash Generated from Operation||-2,533.23||919.26||1,441.42||758.55|
|(ii) Net Cash Generated from Investment||-82.69||-1,795.80||-61.08||-802.06|
|(iii) Net Cash Generated from Financing Activity||2,734.96||-221.93||-219.32||-189.97|
|(iv) Effect Of Exchange Difference||1.28||-38.46||108.43||17.33|
|(iv) Total[ (i)+(ii)+(iii) ]||120.31||-1,136.93||1,269.45||-216.15|
|(v) Cash and Cash Equivalent (Opening)||1,453.74||2,590.68||1,321.21||1,537.37|
|(vi) Cash and Cash Equivalent (Closing)||1,574.06||1,453.75||2,590.66||1,321.22|
Comparison With Peers:
Recommendation on IRCON International Limited IPO:
Registrar of IRCON International Limited IPO:
Bid Details of IRCON International Limited IPO as on
19-Sep-2018 22:00:04 IST
Total Number of Applications in Retail Category: 922594 (approx)
Application-wise Subscription in Retail Category: 8.11X