The Montecarlo IPO: Ahmedabad based civil construction firm Montecarlo Ltd (MCL) has filed papers with SEBI for an initial public offering (IPO) amounting Rs. 550 crores comprising a fresh issue of equity worth Rs 450 crore and a sale of three million shares by promoter Kanubhai Patel Trust by way of IPO.
Montecarlo IPO is coming
Montecarlo was incorporated in 1995 as a private firm. It is an infrastructure engineering, procurement, construction and development company. Since inception, the company has completed more than 67 engineering, procurement and construction (EPC) projects valued at Rs 5,307.87 crore as of December 2017. The company undertakes infrastructure projects such as highways, roads, irrigation, water supply, mining, power transmission and distribution, building and urban infrastructures.
Funds raised through the issue will be utilised towards investment in the company’s projects, and towards working capital requirements of the company.
More than 95% of its order book comprised government projects. Majority of company’s work done for National Highways Authority of India and Rail Vikas Nigam Ltd. Montecarlo’s revenue rose to Rs1,640.25 crore in 2015-16 from Rs1,063.93 crore in the previous year. Profit rose to Rs93.11 crore from Rs62.96 crore in the previous year, according to data from the company’s filings with the Registrar of Companies (RoC).
Several EPC companies have issued its IPO and made debut in the market to raise funds through public offerings. HG Infra Engineering Ltd was set to launch its Rs462 crore initial public offering on 26 February. In May, PSP Projects raised Rs211 crore through its IPO sale. Other EPC companies which made its debut in the IPO market in recent times include Capacit’e Infraprojects Ltd, Power Mech Projects and PNC Infratech Ltd. In 2017, 36 companies raised about Rs 67000 crore through the IPO platform.