IRCON the Mini-Ratna PSU is coming up with an IPO to carry out the disinvestment of up to 9,905,157 Equity Shares at a Price band of Rs.470-475 with a discount of Rs.10 for Retail Investors.
The Company has a long-standing reputation as a sectorial 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. As of March 2018, the company has 86% of the projects from Railways.
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.
The Performance is somewhat muted in the last 4 years due to falling revenue from foreign projects which was the company’s high margin business. The Proportion of the foreign projects have gone down from 27% in FY15 to a mere 7% in FY18. However, the management is confident of reviving the foreign projects going forward.
The Valuation of the IPO has been done excellently by the govt. The P/E at higher band stands at 10.75 so this might give good listing gains.
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