Shivalaya Construction Files Rs 450 Crore IPO for Debt Reduction
Shivalaya Construction, a Delhi-based infrastructure company, has filed draft papers with SEBI for an IPO. The offering includes a fresh issue of Rs 450 crore and an offer-for-sale of 2.48 crore shares by promoters. The company plans to use Rs 340 crore for debt reduction and the rest for general corporate purposes. Shivalaya Construction, incorporated in 2007, specializes in roads, highways, and bridges across 19 states and union territories. With a current order book of Rs 3,627 crore and consolidated revenue of Rs 3,124 crore, the company has appointed IIFL Capital, Axis Capital, and JM Financial as lead managers for the IPO.
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Shivalaya Construction, a Delhi-based infrastructure company, has taken a significant step towards going public by filing draft papers with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO). The proposed IPO comprises a fresh issue of Rs 450.00 crore and an offer-for-sale of 2.48 crore shares by the company's promoters.
IPO Proceeds Allocation
The company has outlined its plans for the funds raised through the fresh issue:
- Rs 340.00 crore will be utilized for debt reduction
- The remaining amount will be used for general corporate purposes
This move comes as Shivalaya Construction reported total borrowings of Rs 3,048.00 crore.
Company Profile
Incorporated in 2007, Shivalaya Construction has established itself as a key player in the infrastructure sector, focusing on:
- Roads
- Highways
- Bridges
The company's operations span across 19 states and union territories in India.
Project Portfolio
Shivalaya Construction boasts an impressive track record and ongoing projects:
- Constructed over 2,700 lane kilometers of roads and highways
- Current order book comprises 14 projects valued at Rs 3,627.00 crore
- Over 1,500 lane kilometers of ongoing projects
Financial Performance
Shivalaya Construction reported consolidated revenue from operations of Rs 3,124.00 crore.
Pre-IPO Placement
The company is considering a pre-IPO placement of up to Rs 90.00 crore. If this placement occurs, it would proportionately reduce the size of the fresh issue.
IPO Management
Shivalaya Construction has appointed three lead managers to handle the IPO process:
- IIFL Capital
- Axis Capital
- JM Financial
These experienced financial institutions will guide the company through the complexities of the public offering.
The IPO filing by Shivalaya Construction represents a significant move for the infrastructure company, potentially providing it with the capital needed to strengthen its financial position and support future growth initiatives in India's expanding infrastructure sector.
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