Issue Opens on: Thursday, March 22, 2012
Issue Closes on: Tuesday, March 27, 2012
Bid Lot: 60 Equity Shares
Price Band: Rs.90 to Rs.106 per share
(Retail and employees are entitled to 5% discount to issue price)
No. of Shares: 12,000,000 Shares of Rs.10/- each
Issue size: Rs.108-127.20 cr.
IPO Cheque in favor of - " Escrow Account - NBCC - R "
IPO Cheque in favor of - " Escrow Account - NBCC - R "
Issue highlights
National Buildings Construction Corporation Ltd. (NBCCL) is a `Schedule A’ ranked PSU,
wholly owned Govt. of India undertaking under the Ministry of Urban
Development (MoUD). Company is engaged in Project Management Consultancy
(PMC) projects, civil infra projects & real estate developments.
USP & Track Record: Established as a preferred construction arm of several government authorities; track record of executing 43 projects in 5 years, currently working on 219 projects across segments.
New Growth Avenues: NBCC intends to tap newer opportunities present in BOT / BOLT / BOOM projects under PPP mode as well as shift focus to high value high margin projects in PMC segment. An additional advantage of such projects is that they offer long-term revenue streams.
Robust Biz Model: NBCCL operates under asset light model where projects are outsourced to sub-contractors and projects are awarded on nomination basis where competition is lesser. Holds 125 acres of land (owns approx. 58 acres of land) across the country in major cities like Delhi, Kolkata, Ahmedabad which will be used for real estate projects.
Financial Performance: Current order book of Rs 10,613 cr (3.3x FY11 Op. Inc) gives fair amount of revenue visibility at least for next couple of years. NBCCL has reported robust growth over last 5 years. Revenue has grown at a CAGR of 21% and PAT has grown at a CAGR of 16% over FY07-FY11.
Healthy Balance Sheet: NBCCL is a Debt free company operating at a negative working capital cycle and generates positive operating cash flows.
CARE has graded 4/5 for the NBCCL IPO indicating above average fundamentals relative to other listed equity securities in India.
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