IRCON International IPO – Review, Allotment Status, Subscription, Price, Date & more

IRCON International IPO is one of the latest upcoming IPOs files with SEBI. A draft prospectus has already been filed with SEBI on March 28th 2018. This article discusses in detail about IRCON International IPO Review along with their IPO Object, IPO Size, IPO release date, IPO price, Grey Market Price, IPO Allotment Status, Company background, Company’s financial position, Company promoters etc.


IRCON International IPO Review & Ratings

IRCON International IPO Ratings & Review
CriteriaRatings
Industry Sentiments7.5/10
Industry Ranking7.7/10
Company Background7.6/10
Company Reputation7.7/10
Competitive Edge7.8/10
Financial Statements7.9/10
Popularity Index7.8/10
Promoters Reputation7.6/10
Retail Appetite7.8/10
Top Brokers Review7.8/10
Overall Ratings7.7/10
Star Ratings★★★☆☆

Summary of IRCON International IPO

ircon international ipoIRCON International Limited has filed its draft papers with the SEBI. The stocks will be listed on both the BSE and NSE. The selling of stakes by the government-run infrastructure company is to raise money by disinvestment.

The IRCON has maintained very good records for the past few years. The idea of disinvestment is to raise money for rural development and infrastructure development.

The money would also be put to use in many other areas of development and for the budget of the financial year 2018-19. Thus, if one prefers to buy the stocks from IRCON is definitely a worthy option as the company is a profit-generating one.

Moreover, since it is a state-run organization, the money one has invested in the stocks remains safe. There is no option for a selling of old equity shares as this shares selling is a part of the disinvestment plan.

The Company has hired 3 Lead Managers i.e. IDBI Capital Markets & Securities Limited, Axis Capital Limited & SBI Capital Markets Limited. Their Registrar to the Offer is Karvy Computershare Private Limited.

This PSU is has proposed to sell 99 lakhs equity shares i.e. 10.53% of the company shares. the IPO size is proposed to be INR 1000 crore.


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IRCON International IPO Date

The IPO date has not been released yet.

IRCON International IPO Subscription

 Subscription
Day 1X
Day 2X
Day 3X
Day 4X
Day 5X

The IPO issue data has not been announced yet. Once the IPO date has been issued, the subscription details will be updated regularly.

IRCON International IPO Allotment Status

Since the issue date has not been fixed yet, the Allotment Status is not out. The Allotment status will be announced about 3-4 weeks of the IPO issue date.

IRCON International Limited IPO Price Band

The price band of the IPO will be known only after the offer price of the IPO issues is known. One can know about the price band of the IPO in about a week.

The face value of the equity shares released by the company is Rs 10 each. The offer price is calculated [.] times the face value at the Floor Price. The Offer Price can also be calculated[.] times the face value of the Cap price of the Price band.

IRCON International IPO Issue size

Issue Size of IRCON International IPO is debatable as some news websites is claiming as INR 1000 crores (according to sources) & some are claiming to be INR 550 Crores.

IRCON International IPO Equity Shares Offerings

As per the Red Herring Draft Prospectus, the company is going out with 99 lakh equity shares for IPO.


IRCON International Limited – Company Overview

The IRCON International Limited is an organization that is run by the government. The headquarters of the company is located in Delhi. There are many regional offices in India and there are plenty of project offices in India.

The company also has operations in foreign nations like Sri Lanka, South Africa, Algeria, Malaysia and Bangladesh. The company was started in April 1976. The money that will be raised by the recent IPO public float of the company would go straight into the government’s treasury.

There are many projects of infrastructure that the company has offered. Few of them are highways, commercial establishments, industrial setups, bridges and other major infrastructure projects in India. The railways are the major customer of the company.

Railways are also the reason behind the huge revenue generation of the company. The recent public IPO float of the company is one of the ideas of the government to raise 80,000 crores by the process of disinvestment. The company has a decent workforce number and has contributed more to the government of India’s revenue.

Key Members of the Company

  • Sunil Kumar Chaudhary (Chairman & MD)
  • Deepak Sabhlok (Director)
  • Hitesh Khanna (Director)

IRCON International Limited – Financial Statement

Have a look at the Financial Stability of the company before you invest in it.

Asset of the Company

Assets (in INR & Millions)
 Mar’17Mar’16Mar’15Mar’14Mar’13
Non-Current Asset23,31815,02813,88514,78811,683
Current Asset68,99766,36651,33347,34750,706
Total Asset92,31581,39465,21862,13562,389

Revenue and PAT of the Company

Revenue & Profits (in INR & Millions)
 Mar’17Mar’16Mar’15Mar’14Mar’13
Total Revenue3301329086323254150845432
Profit after Tax (PAT)39793624570174708049

Earnings per Equity Share

Earning per Equity Share (in INR)
 Mar’17Mar’16Mar’15Mar’14Mar’13
Basic38.8139.72284.42377.34406.60
Diluted38.8139.72284.42377.34406.60

The PAT of the company is still a very healthy figure but the company has seen a massive decline in PAT within past 5 years. Although, the IPO is supposed to go at a decent run reason being of the PSU tag & high revenue & PAT.


IRCON International Limited – Promoter

The promoter of the company is the President of India. The promoter holds most of the shares of the company.

Interest of Promoters

Interest of Promoters in the promotion of the company

The promoter of the company has promoted the company and they have shown interest in their shareholding of the company in the form of equity shares.

Interest of promoters in the property of the company

The promoter is not interested in the property of the company and they do not have any interest in acquiring the machinery of the company. They have not shown interest towards the property for two years before the filing of the Draft Red Herring Prospectus with SEBI.

Interest of promoters in the intellectual property of the company

The promoter does not have any interest in the intellectual property of the company


IRCON International IPO Issue Details or Offer Details

OfferUp to 9,905,157 equity shares aggregating to Rs. X Million
consisting of:
Employee Reservation PortionUp to 500,000 equity shares aggregating to Rs. X Million
Net Offer9,405,157 equity shares aggregating to Rs. X Million
Consisting of:
A QIB Portion4,702,578 Equity Shares of Rs.10 each
of which
Mutual Fund Portion235,129 Equity Shares of Rs.10 each
Balance for all QIBs Including Mutual Funds4,467,449 Equity Sharesof Rs.10 each
B. Non-Institutional PortionNot less than 1,410,774 Equity Shares of Rs.10 per share
C. Retail PortionNot less than 3,291,805 Equity Shares
Pre or Post Offer Equity Shares94,051,574 Equity Shares

The company is slated to offer 99 lakh equity shares in the market for the purpose of IPO. The they want to generate INR 1,000 crore fund from this IPO.


IRCON International IPO Issue Object

Following are the objects are of the Offer:

  • To carry out the disinvestment of upto 9,905,157 Equity Shares, including Employee Reservation Portion, by the Selling Shareholder constituting 10.53% of the company’s pre-offer paid up equity share capital
  • To achieve the benefits of listing the Equity Shares on the Stock Exchanges

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IRCON International IPO – Basis of the Offer

IRCON International Limited determines its own offer price. The shareholders of the company research the market for the demand for the products as the company has decided to sell off the equity shares.

The company consults the BRLMs’ and decides on the basis of the qualitative and the quantitative factors of the company. The face value of the equity shares released by the company is Rs. 4 each.

The offer price is calculated [.] times the face value at the Floor Price. The Offer Price can also be calculated [.] times the face value of the Cap price of the Price band.

Qualitative Factors

The company believes that their qualitative strengths help them to compete in the highly competitive industry. These are the factors:

  • The business that operates all across the world in various sectors
  • The executions are recorded and are always on track by the use of OS and Controls
  • Very Strong financial performance and credit providing profile.
  • The growth that can be made visible by the use of the robust natured order book and good execution methods
  • The highly experienced and qualified professionals of the company
  • Excellent Management team

Quantitative Factors

The Quantitative factors are used to compute the offer price of the company

  • Basic and Diluted Earnings Per Share (“EPS”)
  • Price/Earning (“P/E”) ratio in relation to Price Band of Rs [●] to Rs [●] per Equity Share
  • Return on Net Worth (“RoNW”)
  • Minimum Return on Increased Net Worth after Offer needed to maintain Pre-Offer EPS
  • Net Asset Value (“NAV”) per Equity Share
  • Comparison with Listed Industry Peers
  • The Offer Price will be [●] times of the face value of the Equity Shares

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IRCON International Limited IPO Lead Managers

Lead Managers
IDBI Capital Markets & Securities Limited
Axis Capital Limited
SBI Capital Markets Limited

IRCON International IPO Registrar of the Offer

Registrar of the Offer
Karvy Computershare Private Limited

IRCON International IPO Review by Top 10 Stock Brokers

Top Stock Brokers ReviewCompany Repu-tationCompe-titive EdgeFinan-cial State-mentPopu-larity IndexPromo-ters Repu-tation
Angel Broking7.5/107.9/107.5/107.9/107.9/10
Sharekhan7.6/107.9/107.6/107.9/107.6/10
Kotak Securities7.8/107.5/107.9/107.9/107.8/10
ICICI Direct7.8/107.8/107.7/107.9/107.9/10
IIFL7.5/107.6/107.8/107.0/107.9/10
Edelweiss7.5/107.9/107.9/107.8/107.6/10
Zerodha7.9/107.9/107.5/107.9/107.0/10
5Paisa7.9/107.9/107.9/107.9/107.9/10
Karvy7.9/107.8/107.6/107.9/107.9/10
Motilal Oswal7.9/107.9/107.6/107.8/107.6/10

IRCON International IPO Grey Market Premium

The IRCON International Limited IPO Grey Market Premium will be announced two weeks before the price of the issue is announced.


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IRCON International IPO News

News 1 – IRCON to file for Rs 550-cr IPO soon


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