· Fresh issue of Equity Shares aggregating up to Rs. 4,300 million
· Offer for sale aggregating up to 10,227,273 equity shares
· The minimum Bid lot is 65 equity shares and in multiples of 65 equity shares thereafter
· Issue opening date – August 1, 2016 and Issue closing date – August 3, 2016
Photo Caption (Left to Right)
Mr. Amit Jain , Executive Director, Axis Capital Limited , Mr. Nipun Goel, President, Investment Banking, IIFL Holdings Limited , Mr. Karan Suryavanshi, Dilip Buildcon Limited , Mr. Devendra Jain, Director and CEO, Dilip Buildcon Limited , Mr. Dilip Suryavanshi, Chairman & Managing Director, Dilip Buildcon Limited , Mr. Rohan Suryavanshi, Head Strategy & Planning, Dilip Buildcon Limited, Mr. Vaibhav Rawat, CFO, Dilip Buildcon Limited, Mr. Chitresh Mody, (MD & Head of ECM), J M Financial Institutional Securities Limited, Mr. Sunil Sethi, Managing Director, PNB Investment Services Limited.
MUMBAI, July 25, 2016: Bhopal-based Dilip Buildcon Limited (“Company”), a private sector road-focused EPC contractor in India will be launching its initial public offering (“IPO” or the “Issue”) which is scheduled to open on August 1, 2016 and close on August 3, 2016, with a price band of Rs. 214 – Rs. 219 per Equity Share of face value of Rs. 10 each of the Company (the “Equity Shares”). The Anchor Investor Bid/Issue Period shall be July 29, 2016, being one working day prior to the Issue opening date.
The IPO comprises of fresh issue Equity Shares aggregating up to Rs.4,300 million and an offer for sale of up to 1,136,364 Equity Shares by Dilip Suryavanshi, up to 1,136,364 Equity Shares by Devendra Jain and up to 7,954,545 Equity Shares by the BanyanTree Growth Capital, LLC.
The Company proposes to utilize the net proceeds of the Fresh Issue for prepayment or scheduled repayment of a portion of term loans availed by our Company, to meet working capital requirements and general corporate purposes. Company will not receive any proceeds from the Offer for Sale.
The Issue is being made through the Book Building Process in accordance with Regulation 26(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 (“SEBI Regulations”) wherein not more than 50% of the Issue shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (the “QIB Portion”), provided that our Company and the Selling Shareholders, in consultation with the BRLMs, may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis. One-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price.
5% of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Issue Price.
Further, not less than 15% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Issue shall be available for allocation to Retail Individual Bidders in accordance with the SEBI Regulations, subject to valid Bids being received at or above the Issue Price. All potential Bidders, other than Anchor Investors, are required mandatorily to utilise the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective bank accounts which will be blocked by the Self Certified Syndicate Banks (“SCSBs”) to participate in the Issue.
Axis Capital Limited, IIFL Holdings Limited, JM Financial Institutional Securities Limited (formerly JM Financial Institutional Securities Private Limited) and PNB Investment Services Limited are the Book Running Lead Managers (“BRLMs”) to the Issue. The Registrar to the Issue is Link Intime India Private Limited.
The Equity Shares of Dilip Buildcon Limited are proposed to be listed on the NSE and BSE.
About Dilip Buildcon Limited:
Dilip Buildcon is one of India’s leading EPC companies. The company is building roads, bridges, dams, canals, water supply etc. worth Rs. 17,530 crore, across 12 states. Each project is executed by company’s workforce of over 19,476 employees using a large fleet of over 7,345 modern construction equipment. Owing to its unique strategy and focused approach the company has grown from Rs. 1,192 crore in 2012 to Rs. 4349 crore in 2016.
Disclaimer:
DILIP BUILDCON LIMITED is proposing, subject to applicable statutory and regulatory requirements, receipt of requisite approvals, market conditions and other considerations, to make an initial public offering of its equity shares (“Equity Shares”) and has filed the RHP dated July 21, 2016 with the Registrar of Companies, Madhya Pradesh at Gwalior. The RHP is available on the website of the SEBI at www.sebi.gov.in, the websites of the Book Running Lead Managers at www.axiscapital.co.in, www.iiflcap.com, www.jmfl.com and www.pnbisl.com and the websites of the Stock Exchanges at www.bseindia.com and www.nseindia.com. Any potential investor should note that investment in Equity Shares involves a high degree of risk, for details, potential investors should refer to the section titled “Risk Factors” beginning on page 15 of the RHP.
This announcement is not an offer of securities for sale in the United States or elsewhere. This document has been prepared for publication in India and is not for publication or distribution, directly or indirectly, in or into the United States. The Equity Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws in the United States, and unless so registered may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable state securities laws. Accordingly, such Equity Shares are being offered and sold within the United States only to “qualified institutional buyers” (as defined in Rule 144A under the U.S. Securities Act) in reliance on Rule 144A or another exemption from registration under the U.S. Securities Act and outside of the United States in offshore transactions in reliance on Regulation S under the U.S. Securities Act and the applicable laws of the jurisdiction where those offers and sales occur. There will be no public offering of the Equity Shares in the Unites States.
Risk to Investors:
•The 4 Book Running Lead Managers associated with the Issue have handled 19 public issues in the past three years, of which 7 issues closed below the issue price on the listing day.
•The average cost of acquisition of Equity Share for our Promoters, Dilip Suryavanshi, Seema Suryavanshi and Devendra Jain, is Rs.5.19, Rs.5.41 and Rs.0.48 and the Issue Price at upper end of price band is Rs. 219