SEBI approved Dilip Buildcon’s DRHP, will raise funds through IPO
SEBI cleared the way for Dilip Buildcon to raise funds through an Initial Public Offering (IPO) by approving its draft that the infrastructure firm filed in February. Dilip Buildcon will be raising more than Rs 430 crores through this IPO.
They filed its Draft Red Herring Prospectus (DRHP) with SEBI in the beginning of last month, i.e. February 1, 2016, and the Securities and Exchange Board of India recently approved the same, on March 10, 2016.
This IPO will include the issue of fresh shares, whose aggregated value grosses up to Rs 430 crore, with the offer to sell 11.36 lakh shares. These shares are held by the promoters of this company, Dilip Suryavanshi and Devendra Jain along with BanyanTree Growth Capital, the private equity fund.
The earnings of the issue will be utilised to repay a certain fraction of term loans and pre-pay some. This repayment and pre-payment will help them to fulfil its corporate agendas and meet its working capital requirements in time.
One of the promoters , Dilip Suryavanshi said, “we were planning to raise funds for a very long time and the day SEBI gave a green signal to our proposed draft, we couldn’t be happier. We are looking forward to utilising the proceedings of this IPO and meet our corporate requirements.”
Dilip Buildcon is considered one of the best-in-class private sector Engineering, Procurement and Construction (EPC) contractors of India, whose function areas are primarily focused on road construction.
The book running lead managers to this issue are Axis Capital Ltd, IIFL Holdings, JM Financial Institutional Securities and PNB Investment Services. The shares are believed to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) as well.