About the Company:
IRCON International is an integrated Indian engineering and construction company, specializing in major infrastructure projects, including, railways, highways, bridges, flyovers, tunnels, aircraft maintenance hangars, runways, commercial and residential properties, development of industrial areas, and other infrastructure activities.
Company is headquartered in New Delhi and has overseas office in Malaysia. Additionally, they have 26 project offices in India and abroad (including in Sri Lanka, Bangladesh, South Africa and Algeria) and five regional offices to support and manage their business operations.
Company has a rich experience in executing major construction and infrastructure projects, both internationally and domestically.
The scope of their services primarily includes design and engineering of the project, procurement of equipment and packages, project management, and commissioning.
Company also executes on build, operate and transfer mode in various projects in order to meet the requirements of the bids. As of March 31, 2018, company had an Order Book of Rs.22,406.7 crores.
Company’s History:
IRCON International commenced operations in 1976, and have serviced a diverse range of infrastructure and construction projects, and while their primary focus and strength are still deeply rooted in the railway sector.
Since the Company has diversified progressively into other transport and infrastructure segments, such as highway and road construction, and expanded their geographical coverage to many countries around the world.
Awards Received by the Company:
IRCON International Ltd has received several awards, including Dun and Bradstreet Infra Awards 2017 in Construction and Infrastructure Development (Railways), India Pride Award 2016-2017 (Central PSU) and the Governance Now 5th PSU Awards for Consistent Growth.
Company’s Order Book:
Company’s Order Book for the last three fiscal years ended on March 31, 2018 was Rs.17,568.8 crores, Rs.18,878.3 crores and Rs.22,406.7 crores, respectively, with railways projects and highways projects continuing to be the core areas of operations, contributing over 90% of their revenue throughout these periods.
Approximately 99.58% of their Order Book is from government or governmental agencies, including the Government of India, states and municipalities, while less than 1% of the Order Book is from private sector clients.
Company’s International Operations:
Over the years, Company has extended their operations to other geographies including countries like Algeria, Bangladesh, Indonesia, Iran Iraq, Jordan, Malaysia, Nepal, Saudi Arabia, Tanzania, UK and Zambia. Presently, IRCON has projects in Malaysia, Sri Lanka, Algeria and Bangladesh.
Company’s Business Operations:
Company’s core operations are Construction and Infrastructure development.
Construction Business:
In their railway construction business, IRCON is a turnkey construction company that specializes in new railway lines, rehabilitation/conversion of existing lines, station buildings and facilities, bridges, tunnels, signaling and telecommunication, and railway electrification.
Company also has electrical business, where they carry out railway electrification and railway siding as turnkey projects. Company also leverage their in-house design capacity to carry out projects on EPC basis.
As of March 31, 2018, they were undertaking a total of 33 railway projects in two countries internationally and in 13 states in India, with an aggregate length of 1,664.74 km.
Infrastructure Development Business:
In the infrastructure development business, they develop and maintain railways and roads on a BOT basis. As of March 31, 2018, Company had one completed road project of 115 km in India.
Management Team:
- Mr. Sunil Kumar Chaudhary (Designation: Chairman and Managing Director)
- Mr. Deepak Sabhlok (Designation: Director – Projects)
- Mr. Mukesh Kumar Singh (Designation: Director – Finance & Chief Finance Officer)
Special Thanks: We would like to thank Board of Directors of IRCON International Ltd for inviting Markets Guruji Team to the IPO Press Conference & Listing Ceremony.
Positives for the Company:
Established Player & Operates in Diverse Sectors covering many Countries.
Since incorporation, Company has diversified into various infrastructure sectors and IRCON is now an established player in the field of railways and highways construction.
Company has a geographically diversified business operations, they have so far completed more than 127 projects in more than 24 countries across the globe, and 380 projects in various states in India as of March 31, 2018.
Robust Order Book.
In any industry, an order book is considered an indicator of future performance since it represents a portion of anticipated future revenue.
IRCON caters to both domestic as well as international markets and receive orders both on tender basis as well as through nomination by the Ministry of Railways.
Company’s Order Book as of March 31, 2018 was Rs.22,406.7 crores which translates into approximately six times their total operating revenue in Fiscal Year 2018,
Strong Financial Position helps in meeting the Pre-qualification Requirements.
Company’s strong financial position helps them to meet the pre-qualification requirements of some of their clients & has enhanced their competitiveness in the market and has enabled them to maintain the momentum of their Order Book growth.
Peer Group Comparison:
There are no comparable listed companies in India engaged in the same line of business as IRCON International Ltd, hence comparison with industry peers are not applicable.
Financials of the Company: (Consolidated)
| (in Crores) | FY 13 | FY 14 | FY 15 | FY 16 | FY 17 | FY 18 |
|---|---|---|---|---|---|---|
| Revenue | 4543.1 | 4150.7 | 3232.5 | 2908.6 | 3301.3 | 4212.4 |
| Net Profit | 804.8 | 746.9 | 563.03 | 393.1 | 383.9 | 411.5 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 17th September 2018 |
| Issue Closes on:. | 19th September 2018 |
| Issue Price | Rs.470 – 475 |
| Retail & Employee Discount | Rs.10 per share |
| Face Value | Rs.10 |
| Minimum Lot | 30 shares |
| Minimum Investment | Rs.14,250 |
| Issue Constitutes | 10.53% |
| Issue Size | Rs.470.49 cr ($65.73 million) |
| Market Cap | Rs.4467 cr ($624 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (OFS) | 99,05,157 |
| Equity Shares Prior to the Issue | 9,40,51,574 |
| Equity Shares after the Issue | 9,40,51,574 |
Important Dates:
| Finalization of Basis of Allotment | on or before 25th September 2018 |
| Initiation of Refunds | on or before 26th September 2018 |
| Credit of Equity Shares: | on or before 26th September 2018 |
| Listing Date: | on or before 28th September 2018 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 47,02,578 | 0.00 | 0.01 | 12.29 |
| NII | 14,10,774 | 0.04 | 0.19 | 4.92 |
| Retail | 32,91,805 | 0.85 | 2.96 | 9.66 |
| Employee | 5,00,000 | 0.014 | 0.11 | 0.36 |
| TOTAL | 99,05,157 | 0.29 | 1.02 | 9.77 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 42.13 | 11.27 | 10.98% | 398.51 |
| Check IPO Allotment Status: |
|---|
Karvy Website (Click on the below Link)http://kosmic.karvy.com:81/ipotrack/ |
Reviews of Current & Upcoming IPOs:
| Company Contact Info: |
|---|
| Ircon International Limited Plot no. C – 4, District Centre Saket, New Delhi – 110 017, India Telephone: +91 11 2956 5666 Fax: +91 11 2652 2000/2685 4000 E-mail: cosecy@ircon.org Website: www.ircon.org |
| IPO Registrar Info: |
|---|
| Karvy Computershare Private Limited Karvy Selenium Tower B Plot 31-32, Gachibowli Financial District, Nanakramguda Hyderabad 500 032, Telangana, India Telephone: +91 40 6716 2222 Facsimile: +91 40 2343 1551 Investor Grievance e-mail: einward.ris@karvy.com Website: www.karisma.karvy.com |
