IRCON International IPO – Review, Allotment, Subscription, GMP & DRHP

IRCON International IPO or IRCON IPO comprises of up to 9,905,157 Equity Shares of Face value Rs. 10 each. This IPO is going live on 17th Sep 2018 with the issue size of Rs.470 Cr. The company’s core operations are (i) construction and (ii) infrastructure development. They develop and maintain railways and roads on a BOT basis.

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
Criteria Ratings
Industry Sentiments 7.5/10
Industry Ranking 7.7/10
Company Background 7.6/10
Company Reputation 7.7/10
Competitive Edge 7.8/10
Financial Statements 7.9/10
Popularity Index 7.8/10
Promoters Reputation 7.6/10
Retail Appetite 7.8/10
Top Brokers Review 7.8/10
Overall Ratings 7.7/10
Star Ratings ★★★★☆

Summary of IRCON International IPO

IRCON International IPOIRCON International Limited is an Indian engineering and construction company, specializing in major infrastructure projects, including, railways, highways, bridges, flyovers, tunnels, aircraft maintenance hangars, runways, EHV sub-stations, electrical and mechanical works, commercial and residential properties, development of industrial areas, and other infrastructure activities. 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.

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. Our Order Book for these ongoing projects amounted to ₹194,257.70 million as of March 31, 2018, accounting for 86.70% of our total Order Book. Revenue from railway projects accounted for 77.12%, 68.26% and 68.95% of our total revenue from operation for Fiscal Year 2016, Fiscal Year 2017 and Fiscal Year 2018, respectively.

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.


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IRCON International IPO Date

The IPO release date is from 17 Sept 2018 – 19 Sept 2018.


IRCON International IPO Subscription

Day / Date QIB NII RII Employee Total Subscription
Day 1: 17 Sept 2018 0.00x 0.04x 0.86x 0.02x 0.29x
Day 2: 18 Sept 2018 0.01x 0.19x 2.96x 0.11x 1.02x
Day 3: 19 Sept 2018 12.29x 4.92x 9.66x 0.36x 9.77x
Shares Offered or Net Issue 4,702,578 1,410,774 3,291,805 500,000 9,905,157

IRCON International IPO Allotment Status

Here, you can find the Allotment Status of this IPO.

Basis of Allotment Finalization Sept 25, 2018
Refunds Initiation Date Sept 26, 2018
Credit of Shares into Demat Account Sept 26, 2018
IPO Shares Listing Date Sept 28, 2018

IRCON International IPO Issue size & Price Band

Issue Size of IRCON International IPO is INR 470 cr. & the Price Band is Rs.470 – Rs.475.

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 Grey Market Premium or GMP

Click here to know IRCON International GMP

IRCON International is a must Subscribe IPO, As per the grey market, this IPO will be profitable.


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.

Financial Statement of the Company

  • RESTATED CONSOLIDATED
Amount (in INR & Million)
31-Mar-18 31-Mar-17 31-Mar-16 31-Mar-15 (Proforma) 31-Mar-14 31-Mar-13
Total Assets 127,782.22 92.314.11 81,394.06 65,210.01 62,134.65 62,389.08
Total Revenue 42,124.02 33,013.48 29,086.37 33,325.05 41,507.70 45,431.58
Total Expense 36,592.07 28,251.21 23,025.27 23,900.63 30,534.16 34,531.76
Profit After Tax 4,115.80 3,839.78 3,931.08 5,630.31 7,469.80 8,048.95
  • RESTATED STANDALONE STATEMENT
Amount (in INR & Million)
31-Mar-18 31-Mar-17 31-Mar-16 31-Mar-15 (Proforma) 31-Mar-14 31-Mar-13
Total Assets 127,782.22 92,314.11 81,394.06 65,210.01 62,134.65 62,389.08
Total Revenue 42,124.02 33,013.48 29,086.37 33,325.05 41,507.70 45,431.58
Total Expense 35,897.50 27,965.82 22,577.26 23,988.63 30,758.73 34,621.35
Profit After Tax 4,115.80 3,839.78 3,931.08 5,630.31 7,469.80 8,048.95

Earnings per Equity Share

Earning per Equity Share (in INR)
  Mar’17 Mar’16 Mar’15 Mar’14 Mar’13
Basic 38.79 39.72 284.42 377.34 406.60
Diluted 38.79 39.72 284.42 377.34 406.60

For the period ending on 31st March 2018, the Earning per Equity Share for both Basic and Diluted is Rs. 42.13 Millions. 


IRCON International Limited – Promoter

The promoter of the company is The President Of India Acting Through The Ministry Of Railways. 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

Offer Up to 9,905,157 equity shares aggregating to Rs. X Million
consisting of:
Employee Reservation Portion Up to 500,000 equity shares aggregating to Rs. X Million
Net Offer 9,405,157 equity shares aggregating to Rs. X Million
Consisting of:
A QIB Portion 4,702,578 Equity Shares of Rs.10 each
of which
Mutual Fund Portion 235,129 Equity Shares of Rs.10 each
Balance for all QIBs Including Mutual Funds 4,467,449 Equity Sharesof Rs.10 each
B. Non-Institutional Portion Not less than 1,410,774 Equity Shares of Rs.10 per share
C. Retail Portion Not less than 3,291,805 Equity Shares
Pre or Post Offer Equity Shares 94,051,574 Equity Shares

 


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

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 & Diluted EPS RONW (%) NAV (Rs.)
31-Mar-18 40.01 10.46 397.47
31-Mar-17 37.27 9.65
31-Mar-16 37.31 10.06
  • Comparison with Listed Industry Peers 

There are no comparable listed companies in India engaged in the same line of business as the Company, hence comparison with industry peers are not applicable.



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

Other Details:

Issue Type Book Built Issue IPO
Issue Size 9,905,157 Eq Shares of Rs 10
(aggregating up to Rs 470.49 Crores)
Face Value Rs 10 Per Equity Share
Issue Price Rs 470 – Rs 475 Per Equity Share
Market Lot 30 Shares
Min Order Quantity 30 Shares
Listing At BSE, NSE

IRCON International IPO Review by Top 10 Stock Brokers

Top Stock Brokers Review Company Reputation Competitive Edge Financial Statement Popularity Index Promoters Reputation
Angel Broking 7.5/10 7.9/10 7.5/10 7.9/10 7.9/10
Sharekhan 7.6/10 7.9/10 7.6/10 7.9/10 7.6/10
Kotak Securities 7.8/10 7.5/10 7.9/10 7.9/10 7.8/10
ICICI Direct 7.8/10 7.8/10 7.7/10 7.9/10 7.9/10
IIFL 7.5/10 7.6/10 7.8/10 7.0/10 7.9/10
Edelweiss 7.5/10 7.9/10 7.9/10 7.8/10 7.6/10
Zerodha 7.9/10 7.9/10 7.5/10 7.9/10 7.0/10
5Paisa 7.9/10 7.9/10 7.9/10 7.9/10 7.9/10
Karvy 7.9/10 7.8/10 7.6/10 7.9/10 7.9/10
Motilal Oswal 7.9/10 7.9/10 7.6/10 7.8/10 7.6/10

IRCON International IPO Grey Market Premium

The IRCON International Limited IPO Grey Market Premium price is Rs 53, the Kostak rate is Rs 250 and the Subject to Sauda is X. 

Grey Market Premium Kostak Rate Rate Date
50-55 Rs 250 Rs 17-Sep-18
80-85 Rs 300 Rs 14-Sep-18
85-90 Rs 300 Rs 12-Sep-18
90-95 Rs 300 Rs 11-Sep-18
95-100 Rs 300 Rs (Subject to 3000) 10-Sep-18

 


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IRCON International IPO News

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

News 2 – IRCON IPO Opens Soon (Download Prospectus)


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