The Vascon Engineers IPO was launched with the purpose of raising funds for its ongoing realty sector projects. The company expects to raise around Rs. 450 crores.
Vascon Engineers IPO was assigned the IPO Grade 3/5 for its oncoming initial public offering by the Credit Rating and Information Services of India Ltd. (CRISIL). The IPO grade indicates that the basics of the issue of equity shares by the Vascon Engineers Ltd are average in comparison to the several other listed Indian equity securities providers. The main objective of the IPO is to raise funds for the number of ongoing projects undertaken by the Vascon Engineers Ltd.
Vascon Engineers IPO - Facts
The Vascon Engineers IPO proposed to issue 1,0680,000 equity shares with the objective of raising Rs. 450 crores for financing 7 of its ongoing real estate projects, which aggregates to 2.25 million square feet of saleable space. The projects follow the build-lease-sell strategy. This strategy works in favor of the real estate developer but on the other hand, this strategy of holding stocks can decrease the profitability of the developer. The company is expected to build more than 34.7 million square feet of space in the next few years.
Vascon Engineers IPO - At a Glance
- The company expects to raise Rs 450 crores from the capital market.
- The price band of the issue is fixed at Rs 1,000 in the floor level and 1,300 in the cap level per share, at a face value of Rs.10.
- The merchant bankers of the Vascon Engineers IPO are Kotak Securities and Merrill Lynch.
- The HDFC Property Fund took control of 10% share in the company for Rs 138.5 crores, as pre IPO placement.
Vascon Engineers Ltd - Overview
The Vascon Engineers Ltd. was established in the year 1986. The first project undertaken by the company was the construction of the manufacturing unit of Cipla Ltd at Patalganga. The company is a specialist in the construction and infrastructure development sector. Apart from real estate, the Vascon Engineers Ltd. has business acumen in hospitality and commercial properties. The technological expertise coupled with the superb management helps in delivering quality work within time. The company is highly reputed in the real estate sector of Pune.
Vascon Engineers Ltd - Performance (2006-07)
- In the time period 2006-07 the consolidated total income of Vascon Engineers Ltd was Rs 3.99 billion.
- In the same time period total net profit was Rs 464.8 million.
- In the year 2006-07, the company registered a growth rate of 180 % in its operating income.
- The company has net asset worth of Rs 2.51 billion, as per March 2007.
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