Dilip Buildcon LogoDilip Buildcon IPO

Bhopal-based Dilip Buildcon is a road-focused EPC contractor with completed projects in Madhya Pradesh, Gujarat, Himachal Pradesh, Rajasthan and Maharashtra, although it has some interest in irrigation sector as well. In addition, the company has ongoing projects in Tamil Nadu, Punjab, Chhatisgarh, Jharkhand, Haryana, Telangana, Andhra Pradesh, Karnataka, Goa and Uttar Pradesh. Dilip Buildcon has recently expanded into the irrigation and urban development businesses.

The company claims to operate one of the largest fleets of construction equipment in India. As of 31 March 2016, its fleet included 7,345 vehicles and other construction equipment from Schwing Stettar, Metso, Wirtgen and Vogele. Dilip Buildcon is also one of the largest employers in the construction industry in India and employed 19,746 employees as of March 2016. As of March 31, 2016, Dilip Buildcon had an order book of INR107,787.31 million, consisting of 50 third party road EPC projects, six of its own road BOT projects, three irrigation projects, one mining project, one cable-stayed bridge project and three urban development projects. Dilip Buildcon’s main business lines are as follows:

Road Construction business – mainly design, construct and maintain roads and highways on an EPC basis with third party and EPC Contracts. Revenue from the business has grown at a compounded growth rate of 32.82% from INR11,843.54 million for FY2012 to INR36,857.62 million for FY2016. Order book for these projects amounted to INR91,243.25 million as of 31 March 2016, accounting for 84.65% of Dilip Buildcon’s total order book.

Irrigation business – The company entered into the business of construction of canals and dams in FY2014. Dilip Buildcon recognized revenue of INR1,002.26 million and INR2,378.10 million from this business for Financial Years 2015 and 2016, respectively. As of 31 March 2016, the company has three EPC irrigation projects in Madhya Pradesh with order book for these projects amounted to INR7,054.66 million, accounting for 6.54% of its total order book.

Urban development business – Dilip Buildcon undertakes redevelopment and re-densification of government housing and builds residential units under affordable housing schemes, construction of district court and other structures in group water supply schemes relating to irrigation or water supply for agricultural purposes. The company entered into this business in FY2013 and has recognized revenue of INR1,260.11 million and INR1,557.59 million from this business for FY2015 and 2016. As of March 31, 2016, the company had two EPC urban development projects in Madhya Pradesh with order book of INR2,990.41 million, accounting for 2.77% of the total order book.

Infrastructure Development business – develop and maintain roads and highways on a Build Operate Transfer (BOT) basis. As of March 31, 2016, the company had completed 12 projects totaling 1,638.49 lane kms in the states of Gujarat and Madhya Pradesh. In completed projects, Dilip Buildcon operates one BOT project purely on a toll basis where the only source of revenue is the toll it charges vehicles for using the road, three BOT projects on annuity basis where the only source of revenue is the fixed amount that the relevant government agency pays it for building and maintaining the roads on an annual basis, and the remaining eight projects on annuity plus toll basis.

Dilip Buildcon Promoters – Dilip Suryavanshi, Seema Suryavanshi, Devendra Jain and Suryavanshi Family Trust

Dilip Buildcon IPO Subscription Details

Category Shares offered Subscription (no. of times)
Day 1 Day 2 Day 3
QIB  6,201,772  0.00 0.49 5.09
NII  4,548,110  0.01  1.02 59.48
Retail  10,612,256 0.17 0.63 2.38
Total  21,362,138  0.08 0.67 15.33
Subscription Dates 1 – 3 Aug 2016
Price Band INR214-219 per share
Fresh Issue Size INR430 crore
Offer For Sale 10,227,273 shares
Face Value  INR10 per share
Retail Allocation 35%
Listing On BSE, NSE
Fresh issue size INR430 crore
Prepayment/repayment of a portion of term loans availed by the company INR202.38 crore
To meet working capital requirement INR200 crore

Major shareholders in Dilip Buildcon

Name of shareholder Equity Shares Percentage (%)
Dilip Suryavanshi 56,809,851 48.50
Devendra Jain 36,999,936 31.59
Seema Suryavanshi 11,904,200 10.16
BanyanTree Growth Capital LLC 11,420,969 9.75
Suryavanshi Family Trust 100 0.00
Karan Suryavanshi 3 0.00
Suryavanshi Minerals Private Limited 3 0.00
Dilip Suryavanshi HUF 3 0.00
Total 117,135,065 100.00
Dilip Buildcon’s consolidated financial performance (in INR crore)
  FY2012 FY2013 FY2014 FY2015 FY2016
Total revenue 1,192.8 1,926.8 2,401.5 2,768.5 4,348.9
Total expenses 1,028.5 1,637.1 2,159.8 2,635.3 4,118.1
Profit after tax 108.1 241.2 185.6 87.6 196.6

Dilip Buildcon IPO Allotment Status

Dilip Buildcon IPO allotment status will be available on Link Intime’s website. Click on this link to get allotment status on 9 August 2016.

You can also check your IPO allotment status from your mobile at
http://eipo.linkintime.co.in/ipo/ 
http://linkintime.co.in/ipo

Dilip Buildcon Contact Details

Dilip Buildcon Ltd
Plot No. 5, Inside Govind Narayan Singh Gate,
Chuna Bhatti, Kolar Road,
Bhopal 462 016

Phone: +91 755 402 9999
Fax: +91 755 402 9998
Email: csabhishek@dilipbuildcon.co.in
Website: www.dilipbuildcon.co.in

Registrar of Dilip Buildcon IPO

Link Intime India Private Limited
C-13 Pannalal Silk Mills Compound,
LBS Marg, Bhandup West, Mumbai – 400 078
Maharashtra, India

Phone: +91 22 2596 3838
Fax: +91 22 2594 6969
Email: dbl.ipo@linkintime.co.in
Website: http://www.linkintime.co.in

Listing Performance of Dilip Buildcon IPO

IPO Opening Date: 1 Aug 2016

IPO Closing Date: 3 Aug 2016

Finalisation of Basis of Allotment: 8 Aug 2016

Initiation of refunds: 9 Aug 2016

Transfer of shares to demat accounts: 10 Aug 2016

Listing Date: 11 Aug 2016

Listing Price on NSE: INR240 per share (return of 9.5% above IPO price)

Closing Price on NSE: INR254.1 per share (return of 16% above IPO price)

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9 Comments on "Dilip Buildcon IPO"

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Allocation out, I applied for one lot after much deliberation and have got one. What is the latest gmp experts?

Anchor investors have bought shares of 196 crore. Nomura, HDFC, Abu Dhabi among investors, This looks good I’d say

http://www.bseindia.com/markets/MarketInfo/DownloadAttach.aspx?id=20160729-32&attachedId=59532999-43ee-42da-b3cd-2ee5cc15b9ed

Dilip Buildcon GMP is around 20 and falling!!!

Dilip Buildcon Valuation
EPS 2015/16 – 16.79
PE ratio – 13

Competitors
J Kumar PE ratio – 14.93
IRB Infrastructure PE ratio – 11.79
PNC Infratech PE ratio – 13.54

From Dilip Buildcon RHP

Excellent info, what about GMP?

I don’t have much information about grey market. Please refer to other boarders like Ankit Pradhan who have be6tter idea about grey premiums.

this is a funny sounding ipo. financial results of last 5 years show a see-saw movement in net profits. what happened in FY14? and how come net profits that were consistently at or near 10% of revenue, fell to less than ~5% of revenue in FY15?

I’m not sure what happened but 5% margin sounds more right than 10% for a construction company.

Is this a good ipo to apply? I was lucky to not get allotment in lnt infotech.

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