ISSUE OPENS / CLOSES ON
|
31-08 /02-09-2015
|
|
ISSUE SIZE
|
RS 425 CR PLUS OFS OF 32,35, 762
EQUITY SHARES
|
|
PRICE BAND
|
RS 100-103
|
|
FACE VALUE
|
RS 10
|
|
BUSINESS
|
BOT OPERATORS
|
|
PROMOTERS
|
|
|
LISTING
|
BSE, NSE
|
|
BRLM
|
KOTAK, INGA CAPITAL, EDELWEISS, ICICI
SECURITIES, MACQUARIE
|
|
REGISTRAR
|
INTIME
|
|
IPO GRADE
|
NA
|
BUSINESS:
The company is a road
BOT operator specialising in the development, operation and maintenance of
highways, roads and related projects. The company is a subsidiary of Sadbhav
Engineering Limited which again a BOT operator.
SIPL has project
portfolio consisting of ten BOT projects of which six road projects are fully
operational, one is the partially operational border check posts and the
remaining three projects are in various stages of development. Nine of the ten
BOT projects are toll projects, while the remaining one is an annuity project.
The operational projects cover approximately 1,531.16 lane kms and the projects
under development cover approximately 1,061.48 lane kms.
RISKS :
1.
Company
has incurred loss in 2014-15 and defaulted to ICICI / IDBI banks.
2.
SIPL
depends heavily on promoter group / company for business procurement.
3.
A
portion IPO proceeds will be utilised for repayment of past loans.
4.
Road and highway
projects are dependent on the procurement of unencumbered contiguous land. As
of now it is very difficult
procure the same.
5.
Company
derives 90 plus percentage of its revenue from toll collection. Some states
have restrained from collecting the
toll because of poor quality works / poor maintenance.
6.
There
were delays in payment of statutory dues in the past.
7.
Promoters have already pledged the equity
shares with the lenders.
8. The average cost
of acquisition of Equity Shares Promoter, is ₹19.10 and by Vishnubhai M. Patel is ₹0.91.
FINANCIALS:
(RS
IN CRORES)
31-03-2015
|
31-03-2014
|
31-03-2013
|
|
TOTAL REVENUE
|
528
|
393
|
315
|
NET PROFIT
|
302
|
146
|
46
|
EPS (Rs)
|
(9.74)
|
(5.05)
|
(1.48)
|
SHARE CAPITAL
|
310.96
|
28.25
|
28.25
|
RONW (%)
|
(7.25)
|
0.10
|
1.4
|
VALUATIONS
AND RECOMMENDATIONS
Loss making, debt ridden, unprofessionally managed
company. The IPO is being made to give relief to early investors, lenders who
are fed up with the group. BRLMs / early investors / promoters are trying to
shit the loss from themselves to gullible public. Loot Maar category IPO.
