IRCON International Limited IPO: Dates, Financials, Reviews, Recommendations, Subscription status and GMP - IPO Reviews

Thursday, March 29, 2018

IRCON International Limited IPO: Dates, Financials, Reviews, Recommendations, Subscription status and GMP

IRCON International Limited has just filed a draft prospectus with the Securities and Exchange Board of India (SEBI) to go for the Initial Public Issue (IPO). Ircon International Limited, previously known as  Indian Railway Construction Company Limited (IRCON) is a state-run company promoted by President of India. Established in 1976, this PSU is a wholly(100%) owned entity of the Ministry of Railways. The primary covenant of this company includes construction of railway projects in both India and abroad. Ircon has successfully completed over 1250 major infrastructure projects in India and 200 major projects in more than 31 countries.
IRCON International Limited IPO: Dates, Financials, Reviews, Recommendations, Subscription status and GMP

Area of business: 

The core competencies of the company are Railways, Highways and EHT Substation Engineering and Construction. 

Issue Size: 

The promoter through Ministry of Railways is selling 9.90 million shares out of 93.78 million shares, which is equivalent to 10.53% stake in the company. Based on the SEBI’s norms on 25% minimum public float, the company will have to wait for 3 years to reduce its stake to 75%. The size of the IPO accounts for Rs 1,000 crores. 

Financials: 

IRCA International Limited reported a net profit of  Rs 187.65 crore between April to December 2017 period. The total revenue from the operations for the period stood at 2,412.94 crores.

The total revenue in the FY17 stood at Rs 2,948.06 crore, out of which the net profit was  384.18 crore. 

The company's revenue grew at a CAGR of 0.83% during FY15 to FY17. Whereas the net profit slumped at a compounded annual rate of 11.96% during the same period.

The consolidated Earnings per share (EPS) for the year ended on March 31, 2017, is Rs 38.82 and for the nine months period ended December 31, 2017, is Rs 18.98. 

There are no listed companies in India engaged in the same line of business to compare the financials, hence the comparison with industry peers is not applicable.

No comments:

Post a Comment