Karda Construction Limited IPO

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Background of the Company
(i)  
The Karda Group is a well established Nashik based group having its presence in the construction industry for more than two decades. The group was founded by our promoter Mr. Naresh Karda in year 1994. In the years following   its inception the group concentrated on developing affordable housing in the residential segment and from year 2001 onwards, the group diversified into commercial segment.
(ii) Our Company, Karda Constriction Limited was incorporated in 2007 with a view to corporatize the group’s activities in the real estate sector. Our Company is focused on quality and affordable developments. We believe we have an    established brand and reputation, and a track record of developing innovative projects through our emphasis on contemporary architecture, strong project execution and quality construction in the real estate industry, for which our Company had received “Mega Builder of the Year” award of Divya Marathi in June 2013. Further our Promoter, Mr. Naresh Karda had also been awarded as “Business Icon of Nashik” by Lokmat in December 2014.

Karda Construction Limited IPO Stock Quote & Charts

176.60

-0.79%

  • Open: 178.00
  • High - Low: 180.55 - 175.10
  • Previous Close: 178.00
  • Total Traded Volume: 24194
  • Updated On: 21-May-2018

Objects of the Issue:

Objectives of

Karda Construction Limited IPO

are: 1. Part repayment of overdraft facilities 2. Part repayment of term loans 3. General corporate purpose 4. Issue related expenses

Listing Date: Mar 30 2018

Issue Details:

Open Date: Mar 16 2018
Close Date: Mar 21 2018
Total Shares: 43,00,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 77.40 Cr.
Lot Size: 80 Shares
Issue Price: ₹ 175-180 Per Equity Share
Listing At: NSE,BSE
Listing Date: Mar 30 2018

Promoters And Management:

(i) Mr. Naresh Karda, aged 45 years, is the Chairman and Managing Director of our Company. He is the promoter of our company. He is a diploma holder in Civil Engineering from Pravara Nagar Polytechnic, Maharashtra State Board. He has over 23 years of experience in the field of real estate & construction and has completed more than 36 projects and delivered 2,500 homes successfully in Nasik City. He has been awarded as the “Business Icon of Nasik” by Lokmat    in 2014 and received the award from the hands of Chief Minister Mr. Devendra Fadnavis. He is responsible for providing disciplined and professional approach in his area of expertise i.e. Real Estate. He is also responsible for improving brand  equity of our Company. (ii) Mr. Manohar Karda, aged 46 years, is the Whole Time Director of our Company. He is an undergraduate. He has over 24 years of experience in the family business and around 9 years in the field of real estate & construction. He plays a crucial role in the purchase management of our Company. He is also responsible for various other day to day activities of our Company. (iii) Mrs. Disha Karda aged 43 years, is the Executive Director of our Company. She is a Graduate from Gujarat University and has also done her B.Ed. from Annamalai University. She has an overall experience of around 10 years. She is responsible for day-to-day operation, which includes managing committees and staff as well as developing business plans in collaboration with the board of the company. Also responsible for making sure that contracts,  insurance requirement and safety standards are correctly complied with.

Capital Structure:

Authorized Share Capital (1,40,00,000 shares at FV@10) 14 cr
Issued, Subscribed,& Paid-up Share Capital Before Issue (1,00,00,000 Shares at FV@10) 10 cr
Present Issue (43,00,000 Shares at FV@10) Fresh Shares-2300000 & OFS- 200000 4.3 cr
Retail Quota(<2 Lkah) 50%
HNI & QIB Quota(>2 Lakh) 50%
Paid Up Capital after the issue 12.3 cr

Company Financials:

 1. Balance Sheet Snippet( For F.Y 16-17)
       (i) Shareholders’ Fund[Equity] Value 3035 lakh
      (ii) Asset 24853.72 lakh
      (iii) Liability 21818.67 lakh
      (iv) Debt/Equity 7.188( very high)
      (v)  Net Worth(Asset- Liability) 3035 lakh
     (vi)  RONW(PAT/Net Worth)  26%
2. Profit n Loss Snippet
     (i) Revenue of last 5 years is growing at CAGR of 26%[ Excellent]
    (ii) PAT of last 5 years is growing at CAGR of 32%[ Excellent]
    (iii)Margins(PBT/Reveune):  8%(good)
    (iv) EPS=  9( post Issue)
    (v)  P/E(post issue)=20(reasonably priced)at the cutoff price of 180
3. Cash Flow Statement
The company is  generating positive cash flow in last 5 years, which is good  for the  business to sustain in future.

Comparison With Peers:

Sr.no Name of the Company FV EPS PE RONW
1 Kolte Patil Developers Limited 10 4.47 43.13 4.25%
2 Prerna Infrabuild Limited 10 1.48 26.69 5.51%
3 Arihant Superstructures limited 10 6.47 28.18 29.01%
4 Karda Construction limited 10 9 20 21%

Issue Subscription Detail / Current Bidding Status:

Review and Recommendation of

Karda Construction Limited IPO

from our side is: We are recommending a buy rating in this IPO

Company Address:

Karda Construction Limited 2nd Floor Gulmohar Status, Above Business Bank, Samarth Nagar, Nashik - 422005 Phone: +91 253 235 1090 Email: admin@kardaconstruction.com Website: www.kardaconstruction.com

Bid Details as on 21-Mar-2018 22:00:00 IST

No.of shares offered No. of shares bid No. of total times
430,000 666,800 1.55
1,720,000 5,913,920 3.44
2,150,000 4,327,840 2.01
- - -
4,300,000 10,908,560 2.54
No.of shares offered No. of shares bid No. of total times
430,000 666,800 1.55
1,720,000 293,120 0.17
2,150,000 2,665,200 1.24
- - -
4,300,000 3,625,120 0.84
No.of shares offered No. of shares bid No. of total times
430,000 - -
1,720,000 5,620,800 3.27
2,150,000 1,662,640 0.77
- - -
4,300,000 7,283,440 1.69

    Bid Details for KARDA as on 16-Mar-2018 12:25:00 IST
    Sr. No Category No of Shares
    offered/Reserved No of shares bid for No of times of total meant for the category
    1 Qualified Institutional Buyers(QIBs) 4,30,000 0 0.00
    1(a) Foreign Institutional Investors(FIIs) 0
    1(b) Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies) 0
    1(c) Mutual funds 0
    1(d) Others 0
    2 Non Institutional Investors 17,20,000 57,040 0.03
    2(a) Corporates 0
    2(b) Individuals(Other than RIIs) 57,040
    2(c) others 0
    3 Retail Individual Investors(RIIs) 21,50,000 29,040 0.01
    3(a) Cut Off 21,440
    3(b) Price bids 7,600
    Total 43,00,000 86,080 0.02

    The Company’s Return on Capital Employed is around 21%, RONW is 26% and ROE of 89% as on FY 16-17 which is excellent.

    The company currently have 11 Ongoing and 3 Planned projects, which has expected total Carpet Area of
    17,13,725 square feet. The company has strong presence in Nashik. Nashik’s realty market is geared for rapid growth going forward given its proximity to major cities like Mumbai and Pune and current saturation of the realty markets in both these cities. Another important factor likely to influence the
    real estate growth of Nashik is its lower entry costs vis-a-vis Mumbai and Pune and attractive appreciation rates that have made it a haven for property investors.

    icici 5-7 with almost negligible volume
    sandhar 10-12 with no volume
    karda 13-15 with less volume from @Dinesh Gupta

    Due to small size IPO, it is expected to list positive with operators and speculators

    Karda Constructions Limited (IPO)
    shall be listed and admitted to dealings on the Exchange in the list of ‘T’ Group of Securities
    Monday, April 02, 2018

    the scrip will be in Trade-for-Trade segment for 10 trading days

    BSE Code: 541161

    NSE: KARDA

    ISIN No: INE278R01018

    —————————-

    Sandhar Technologies Limited (IPO)

    the Equity Shares of Sandhar Technologies Limited shall be listed and admitted to dealings on the Exchange in the list of ‘B’ Group of Securities.
    Monday, April 02, 2018

    BSE Code: 541163

    NSE: SANDHAR

    ISIN NO: INE278H01035

    🔔 *BSE ANNOUNCEMENT* 🔔

    In continuation to the Exchange’s notice no.  20180328-42 dated Wednesday, March 28, 2018 Trading Members are hereby informed that the trading in the equity shares of Karda Constructions Limited (Scrip Code: 541161) shall be transferred from Trade for Trade segment (T Group) to Rolling segment with effect from April 16, 2018. Accordingly, the dealings in the equity shares of the company will be shifted under B Group.