IPO Central

Dilip 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