Karda Constructions Ltd

 Karda Constructions

About the Company:

Karda Constructions Ltd was incorporated in 2007 with a view to corporatize the group’s activities in the real estate sector. Company is focused on quality and affordable developments.

Karda Group is a well established Nashik based group having its presence in the construction industry for more than two decades.

Since its inception the group concentrated on developing affordable housing in the residential segment and from year 2001 onwards, the group diversified into commercial segment.

Till date Company has successfully completed and delivered 15 residential projects and office space projects.

Currently have 13 Ongoing and 3 Planned projects, which they expect to provide an estimated total Carpet Area of 17,13,725 square feet.

Company has so far been a real estate development company, developing residential and residential-cum commercial projects in Nashik. However with a view to expand the business activities they have recently ventured into construction contracts.

Details of Projects Completed by the Company are given below:

karda construction

Details of Ongoing and Planned Projects are given below:

ongoing projects

Construction Contracts: (Details of Construction Contracts are given below)

Company has also recently ventured into undertaking construction contracts for public and private sector.

Company has successfully secured 4 Government contracts, 3 of which are of Goa Government and 1 of Maharashtra Government having an aggregate contract price of Rs.24.7 crores.

Construction Contracts

Further Company has also won a private sector work contract having contract price of Rs.35.09 crores as entailed below:

private Contracts


Management Team:

  1. Mr. Naresh Karda (Designation: Chairman & Managing Director)
  2. Mr. Manohar Karda (Designation: Whole-Time Director)
  3. Mrs. Disha Karda (Designation: Executive Director)


Promoters Average Acquisition Cost:

Name of the Promoter No. of Shares held Average Acquisition Cost (in Rs.)
Mr. Naresh Karda 76,00,000 5.00


Promoters Stake Pre & Post Issue:

Shareholder Name Pre Issue Stake (%) Post Issue Stake
Mr. Naresh Karda 76.00% 45.53%
Promoter Group Entities             24.00%         19.51%
Total 100% 65.04%


Objectives of the Issue:

Offer for Sale: (Around Rs.36 crores)

Company will not receive any proceeds of the Offer for Sale by the Selling Shareholder.

Fresh Issue: (Around Rs. 41.4 crores)

  • Part repayment of overdraft facilities
  • Part repayment of Term loans
  • General Corporate purpose.


Fund Utilization:

Particulars Amount (Rs. in Crores)
Part repayment of Overdraft Facilities 23.00
Part repayment of Term Loans 7.00
General Corporate Purpose 47.4
Net Proceeds 77.40 crores


Financials of the Company:

(in Crores) FY 13 FY 14 FY 15 FY 16 FY 17 30th Sept 17
Revenue  43.28  59.07  46.53  105.93  110.02  45.69
Net Profit  2.70  3.60  3.07  6.37  8.03 5.51 


Valuation of Peer Group Companies:

Company Name Face Value EPS PE Ratio RoNW NAV
Karda Constructions Limited 10 8.03 22.41 26.46% 33.72
Kolte-Patil Developers Ltd 10 4.47 43.13 4.25% 105.26
Arihant Superstructures Ltd 10 6.47 28.18 29.01% 222.95


IPO Details:

Details Info
Issue Opens on 16th March 2018
Issue Closes on:. 21st March 2018
Issue Price Rs.175 – 180
Face Value Rs.10
Minimum Lot 80
Minimum Investment Rs.14,400
Issue Constitutes 34.96%
Issue Size Rs.77.40 cr
Market Cap Rs.221.4 cr
Listing at NSE & BSE
Equity Shares Offered (OFS) 20,00,000
Equity Shares Offered (Fresh) 23,00,000
Total Equity Shares Offered (OFS + Fresh) 43,00,000
Equity Shares Prior to the Issue 1,00,00,000
Equity Shares after the Issue 1,23,00,000


Important Dates:

Finalization of Basis of Allotment on or Before 26th March 2018
Initiation of Refunds on or Before 27th March 2018
Credit of Equity Shares: on or Before 28th March 2018
Listing Date: on or Before 2nd April 2018

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Subscription Details: 

(Subscription-Category-Wise (no. of times) Till time : 06:00 PM) Shares Offered Day-1 Day-2 Day-3 Day-4
QIB  4,30,000  1.04  1.55  3.1  1.55
NII  17,20,000  2.07  2.16 2.27  3.44
Retail  21,50,000  0.098  0.46 1.28  2.01
Employee  ———–  —–  —– —–  —–
TOTAL  43,00,000  0.98 1.25 1.87  2.53


IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
8.03 22.41 26.46% 33.72


Markets Guruji Opinion:

IPO View Apply For: Expected listing Gain:
Neutral NA NA


Grey Market Premium :

Date IPO Price Band Grey Market premium Kostak Rates
10/03/18 Karda Constructions Ltd 175 – 180 9 -12  700 – 750


Check IPO Allotment Status:

Bigshare Website (Click on the below Link)



Company Contact Info:
Karda Constructions Ltd
2nd Floor, Gulmohar Status,
Above Business Bank,
Samarth Nagar, Nashik – 422 005
Maharashtra, India
InvestorEmail: admin@kardaconstruction.com
Website: www.kardaconstruction.com


IPO Registrar Info:
1st Floor, Bharat Tin Works Building,
Opp. Vasant Oasis, Makwana Road, Marol,
Andheri (E), Mumbai – 400 059.
Tel: +91 – 22 – 6263 8200;
Email: ipo@bigshareonline.com
Investor Email: investor@bigshareonline.com
Website: www.bigshareonline.com


Lead Manager to the Issue:
60, Khatau Building, Ground Floor,
Alkesh Dinesh Modi Marg, Fort, Mumbai – 400 001.
Tel No.: +91 – 22 – 6216 6999;
Investor Email: feedback@afsl.co.in
Website: www.afsl.co.in