IRCON INTERNATIONAL LIMITED IPO

About Company

Incorporated in 1976, Delhi based IRCON International Limited is a government company (under the Ministry of Railways ) engaged in the business of engineering and construction. The Company specializes in major infrastructure projects including highways, railways, bridges, flyovers, electrical and mechanical works, development of commercial, residential and industrial areas. It was ranked 248 in the list of 250 of top 250 global contractors by USA based Engineering News Record (ENR).

IRCON is headquartered in Delhi and has 26 project offices, 5 regional offices in India and 5 overseas project offices in Sri Lanka, Bangladesh, Malaysia, South Africa, and Algeria.

The Company has 1,175 full-time employees on its payroll.

Competitive Strengths of the Company-

1.      Diversified business across many countries.

2.      Strong Financial Performance with a robust credit profile.

3.     Strong order book of Rs 233,871.7 million as on Dec 31^st 2017.

4.      Continuously expanding footprint within and beyond India.

Company Promoters

1. THE PRESIDENT OF INDIA, ACTING THROUGH THE MINISTRY OF RAILWAYS, GOVERNMENT OF INDIA. The Promoter, along with its nominees, holds 99.71 % of the  pre-offer paid-up equity share capital of the company. After this offer, the promoter shall hold 89.18 % of the post offer paid-up equity share capital of the company.

Registrar to the issue

1.      Karvy Computershaare Private Limited

Lead Managers

1.       IDBI Capital Markets & Securities Limited

2.       Axis Capital Limited

3.       SBI Capital Markets Limited

Objects of the Issue:

The objects of the Offer are:

(i)     To carry out the disinvestment of upto 9,905,157 Equity Shares, including Employee Reservation Portion, by the Selling Shareholder constituting 10.53% of our Company’s pre-Offer paid up Equity Share capital our Company.

(ii)   To achieve the benefits of listing the Equity Shares on the Stock Exchanges. Our Company will not receive any proceeds from the Offer and all proceeds shall go to the Selling Shareholder.

Risk factors

1.   This being the first public issue of our Company, there has been no formal market for the Equity Shares.

2.    Investments in equity and equity-related securities involve a degree of risk and investors  should not invest any funds in the Offer unless they can afford to take the risk of losing their investment

Company financial

(Rs in millions)