Mumbai: Mid-sized construction firm -Dilip Buildcon Ltd will launch its initial public offering (IPO) before the end of July, according to two people involved in the process. Capital markets regulator Securities and Exchange Board of India (Sebi) had approved the IPO plan in March.

The company this week asked its book-running lead managers Axis Capital Ltd, IIFL Holdings, JM Financial Institutional Securities and PNB Investment Services to target the launch of the IPO in the second half of July, these people said, asking not to be named.

Fresh shares of up to 430 crore will be issued, and the IPO will also include an offer for sale of 1.136 million shares held by promoters Dilip Suryavanshi and Devendra Jain and private equity fund BanyanTree Growth Capital. BanyanTree, which currently holds about 9.75% in Dilip Buildcon, will sell a 6% stake through the IPO, said the people cited earlier.

The Bhopal-based company, which builds roads, dams, canals and residential projects, had filed its draft red herring prospectus with Sebi in February with a target of raising at least 430 crore through the IPO.

This is Dilip Buildcon’s second attempt at launching an IPO. Last year, the company had proposed to raise to about 650 crore through a public issue of fresh equity shares, but had backed off, citing the cautious sentiment of foreign institutional investors (FIIs) towards the sector. Several of its peers, including Sadbhav Infrastructure Projects Ltd, Ashoka Buildcon Ltd and IRB Infrastructure Developers Ltd, are already listed on the bourses.

The engineering, procurement and construction (EPC) firm, which has built about 50 road projects across India, had a turnover of about 4,000 crore in 2015-16. It also operates 12 build-operate-transfer (BOT) road projects.

Recent policy changes have resulted in greater investor confidence in the highways sector. A steady rise in traffic and toll collections recorded by many highway operators in recent quarters has also improved the investment sentiment in the sector, where many companies are looking to monetize operational assets.

At least 10 other companies, including Mahanagar Gas Ltd, have tapped the capital markets to raise a total of 6,743 crore in 2016. Several others are in the process of launching an IPO. Last year, 21 companies raised 13,614 crore through IPOs, according to data from primary market tracker Prime Database.

The government is planning to award 25,000km of road projects in 2016-17, compared with 10,000km in 2015-16. This has raised the growth potential for road developers looking to win new orders.

Close