The Company is making a Public Offer of  63,80,000 Equity Shares of face value of Rs. 10 each  for cash at a price of Rs. 45 per Equity Share, aggregating to Rs 2870 lakh.

RKEC Projects Limited, a diversified infrastructure company based in Vishakhapatnam, Andhra Pradesh, is opening its IPO on September 25, 2017. The Company is making a Public Offer of  63,80,000 Equity Shares of face value of Rs. 10 each  for cash at a price of Rs. 45 per Equity Share, aggregating to Rs 2870 lakh.

The fresh issue would be for Rs. 2106 lakhs, The Offer for Sale for public for would be for Rs.765 lakhs. 3, 24,000 shares will be reserved for market maker. The Issue (including Market maker portion) And the Net Issue (excluding Market maker portion) will Constitute 26.59% and 25.26%, respectively of the Post Issue Paid up Equity Share Capital. The Lead Manager to the Issue is Hem Securities Limited, a leading player in SME IPOs and the Registrar to the Offer is Bigshare Services Pvt. Ltd. The Issue will close on Sept.28, 2017.The shares will be listed on NSE Emerge.

For the period ended March 31, 2017 and for year ended on March 31, 2016, fiscal 2015 and fiscal 2014, Company’s total revenue was at Rs 197.24 crore, Rs 112.58 crore, Rs 70.84 crore, Rs 57.26 crore respectively, registering  a CAGR of over 36%. 

Further, our EBITDA for the for the period ended March 31, 2017 and for year ended on March 31, 2016, fiscal 2015 and fiscal 2014 were Rs 28.37 crore, Rs 13.05 crore , Rs 9.43 crore and  Rs 9.53 crore respectively, registering  a CAGR of over 31%

For the period ended March 31, 2017, Company’s PAT grew over 86% since FY 2014. Company’s PAT stood at Rs 12.93 crore in FY 2017, Rs 3.34 crore in FY 2016, Rs  1.96 crore in FY 2015 and Rs 1.08 crore in FY2014, respectively.

Mr Radhakrishna Garapati, Chairman and Managing Director, RKEC Projects Limited, highlighting company’s business overview at a media conference said, “The Company was incorporated as RKEC Projects Private Limited on April 01, 2005. Our core business is designing and undertaking construction projects such as Bridges, Ports, dams, high rise structures, airports, cross water, roads, highways, Oil and gas Pipe lines, complexes and environmental structures across India.

During the last decade, The Company has undertaken and successfully completed many construction projects in India covering states of Andhra Pradesh, Tamil Nadu, Gujarat, Odisha, Rajasthan and Maharashtra. In addition to them, it has expanded its presence to three more states, Kerala, Uttar Pradesh and Manipur, with ongoing projects. The Company has completed 81 projects worth Rs 1,049 crore and currently it is working on 7 new Projects. The Company’s order book in terms of total value of contracts stands at approximately Rs 705 crore. Company have entered into projects for diverse range of clients like Defence sector, Railways, Ports, Adani Port, Vedanta Ltd, IVRCL Limited, Rashtriya Ispat Nigam Limited and ESSAR,” he said.

Looking at the company’s strengths, capabilities, 32 years of  valuable experience, expertise and expansion plans, exclusively in infrastructure projects, we are here to take the company to next level and create wealth for the investors” Mr Garapati concluded.

Mr Gaurav Jain, Director, Hem Securities, highlighting the offer and investment rational said “Hem Securities is proud to bring RKEC IPO at very attractive valuations as compared to industry average leaving a large room for wealth creation over a period of time”

“The shares of the company are offered at a pre-IPO P/E of 9.32 whereas the Industry composite P/E is over 50. (Source: ACE Equity Database), added Mr Prateek Jain, Director, Hem Securities.

For more information, please contact: Mr. Aryan Prem Rana, AARYANA MATASCO  

Mobile: 9082348296/7700029963 Email ID: smeipos@aaryanamatasco.com; aaryanamatasco@gmail.com