About the Company:
Patel Infrastructure is an established construction, development and maintenance service company, with a track record of 13 years of experience and expertise in execution of various road focused EPC projects in various states of India.
Company is primarily into two businesses, namely, construction contract business, under which they carry out EPC services for third parties, primarily in the roads and highways sector, including highways and bridges, building and other civil construction projects (EPC Business).
The development of roads and highways projects, including highways and bridges are currently done on hybrid annuity model (“HAM”) basis (the “Annuity Business”), and through their Subsidiaries, Company has completed build, operate, transfer (“BOT”) annuity projects under which they receive toll collection fees and annuity income.
Within their Annuity Business, key on going projects include:
Three HAM projects, of a total contract value of Rs.3930 crores, which they have recently been awarded in the roads and highways sector, namely, the Sethiyahopu-Cholopuram Project and the Cholopuram-Thanjavur Project in the State of Tamil Nadu, and the Darah-Jhalawar Project in the State of Rajasthan.
Within their EPC Business, the key Ongoing projects Include:
- Construction of eight new court buildings in the City Civil Court, Ahmedabad.
- Construction of RCC structure of a new multi-storeyed multispecialty hospital in Gujarat.
- Construction of residential flats, shops and offices under the Pradhan Mantri Awas Yojana in Gujarat.
Company is executing projects across various States in India, with Tamil Nadu, Rajasthan, Punjab, Karnataka, Gujarat and Madhya Pradesh having contributed 44.78%, 35.73%, 12.11%, 4.10%, 2.60% and 0.68%, respectively, to their Order Book, as on October 31, 2017.
Company is pre-qualified to bid independently on an annual basis for bids by NHAI and MoRTH of contract value up to Rs.1234 crores for EPC contracts and Rs.1203 crores for Annuity contracts based on company’s technical and financial capacity as on March 31, 2017.
As on September 30, 2017,Company’s equipment base comprised 683 construction equipment assets of gross block worth Rs.247 crores which includes all type of construction equipments.
As on October 31, 2017, Company had an Order Book of Rs.6,267.2 crores including one OPRC road project, eight EPC road projects, and three HAM projects.
Breakdown of Order Book (Geography Wise):
- Mr. Pravinbhai Vithalbhai Patel (Designation: Chairman)
- Mr. Arvind Vithalbhai Patel (Designation: Managing Director)
- Mr. Dineshbhai Pragjibhai Vaviya (Designation: Executive Director)
Objectives of the Issue:
- Investment in their Subsidiary, Patel Cholopuram-Thanjavur Highway Private Limited for part financing of the Cholopuram-Thanjavur HAM Project.
- Purchase of construction equipment.
- Funding incremental working capital requirement of the Company.
- Repayment/prepayment in full of certain indebtedness
- General corporate Purposes.
|Particulars||Amount (Rs. in Crores)|
|Investment in Subsidiary, Patel Cholopuram-Thanjavur Highway Pvt Ltd||161.47|
|Purchase of construction equipment||45.0|
|Working Capital Requirement||100.0|
|Repayment/prepayment in full of certain indebtedness||25.0|
|General Corporate Expenses||68.53|
|Net Proceeds||400 crores|
Positives For the Company:
Strong track record of completed infrastructure projects across various states in India, with focus on Roads and Highways projects.
Company is an established construction, development and maintenance service company, with a track record of 13 years of experience and expertise in execution of various road focused EPC projects in various states of India including Punjab, Madhya Pradesh, Rajasthan, Karnataka, Tamil Nadu and Gujarat.
During the last five Fiscals, they have completed nine roads and highways projects above the contract value of Rs.30 crores each, aggregating to a total contract value of Rs.2273.2 crores.
Strong Order Book with growing Project Portfolio.
Company’s Order Book has grown significantly from Rs.2085.5 crores as on March 31, 2015 to Rs.6267.2 crores as on October 31, 2017, an increase by 200% in 31 months.
The consistent growth in Order Book is a result of company’s past experience & their focus on maintaining quality standards in construction and project execution skills.
Bharat Mala Project.
Under the Bharat Mala Project government plans to increase the length of national highways to ~200,000 km (Currently it is 103,933 Km).Because of which all the road construction companies are going to benefit in the years to come.
Financials of the Company: (Consolidated)
|(in Crores)||FY 13||FY 14||FY 15||FY 16||FY 17||30th Sept 17|
Valuation of Peer Group Companies: (Consolidated)
|Company Name||Face Value||EPS||PE Ratio||RoNW||NAV|
|Patel Infrastructure Ltd||10||15.58||Will be Updated||28.89%||65.61|
|Sadbhav Engineering Ltd||1||-3.15||—–||-13.68%||73.11|
|Dilip Buildcon Ltd||2||27.56||35.56||20.81%||125.69|
|Ashoka Buildcon Ltd||5||-0.53||—-||-5.91%||113.32|
|KNR Constructions Ltd||2||8.17||37.58||11.24%||62.48|
|PNC Infratech Ltd||2||4.62||45.31||8.09%||56.96|
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IPO Valuation Parameters:
|Earnings Per Share (EPS)||Price To Earnings ratio (PE)||Return on Net Worth (RoNW)||Net Asset Value (NAV)|
|15.58||Will be Updated||28.89%||65.61|
Markets Guruji Opinion:
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Grey Market Premium :
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|00/00/18||Patel Infrastructure Ltd||Will be Updated||Will be Updated||Will be Updated|
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|Company Contact Info:|
|Patel Infrastructure Ltd
“Patel House”, beside Prakruti Resort
Chhani Road, Chhani
Tel: (+91) 265 277 6678
|IPO Registrar Info:|
|Bigshare Services Private Limited
1st Floor, Bharat Tin Works Building,
Opposite Vasant Oasis, Makwana Road,
Marol, Andheri (East)
Mumbai 400 059, Maharashtra, India
Tel: (+91 22) 6263 8200
Investor E-mail: email@example.com