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
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 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 / DateQIBNIIRIIEmployeeTotal Subscription
    Day 1: 17 Sept 20180.00x0.04x0.86x0.02x0.29x
    Day 2: 18 Sept 20180.01x0.19x2.96x0.11x1.02x
    Day 3: 19 Sept 201812.29x4.92x9.66x0.36x9.77x
    Shares Offered or Net Issue4,702,5781,410,7743,291,805500,0009,905,157

    IRCON International IPO Allotment Status

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

    Basis of Allotment FinalizationSept 25, 2018
    Refunds Initiation DateSept 26, 2018
    Credit of Shares into Demat AccountSept 26, 2018
    IPO Shares Listing DateSept 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

    Amount (in INR & Million)
    31-Mar-1831-Mar-1731-Mar-1631-Mar-15 (Proforma)31-Mar-1431-Mar-13
    Total Assets127,782.2292.314.1181,394.0665,210.0162,134.6562,389.08
    Total Revenue42,124.0233,013.4829,086.3733,325.0541,507.7045,431.58
    Total Expense36,592.0728,251.2123,025.2723,900.6330,534.1634,531.76
    Profit After Tax4,115.803,839.783,931.085,630.317,469.808,048.95
    Amount (in INR & Million)
    31-Mar-1831-Mar-1731-Mar-1631-Mar-15 (Proforma)31-Mar-1431-Mar-13
    Total Assets127,782.2292,314.1181,394.0665,210.0162,134.6562,389.08
    Total Revenue42,124.0233,013.4829,086.3733,325.0541,507.7045,431.58
    Total Expense35,897.5027,965.8222,577.2623,988.6330,758.7334,621.35
    Profit After Tax4,115.803,839.783,931.085,630.317,469.808,048.95

    Earnings per Equity Share

    Earning per Equity Share (in INR)

    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

    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


    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 EPSRONW (%)NAV (Rs.)
    • 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 TypeBook Built Issue IPO
    Issue Size9,905,157 Eq Shares of Rs 10
    (aggregating up to Rs 470.49 Crores)
    Face ValueRs 10 Per Equity Share
    Issue PriceRs 470 – Rs 475 Per Equity Share
    Market Lot30 Shares
    Min Order Quantity30 Shares
    Listing AtBSE, NSE

    IRCON International IPO Review by Top 10 Stock Brokers

    Top Stock Brokers ReviewCompany ReputationCompetitive EdgeFinancial StatementPopularity IndexPromoters Reputation
    Angel Broking7.5/107.9/107.5/107.9/107.9/10
    Kotak Securities7.8/107.5/107.9/107.9/107.8/10
    ICICI Direct7.8/107.8/107.7/107.9/107.9/10
    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 price is Rs 53, the Kostak rate is Rs 250 and the Subject to Sauda is X. 

    Grey Market PremiumKostak RateRate Date
    50-55 Rs250 Rs17-Sep-18
    80-85 Rs300 Rs14-Sep-18
    85-90 Rs300 Rs12-Sep-18
    90-95 Rs300 Rs11-Sep-18
    95-100 Rs300 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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