Price band fixed between Rs. 175 to
180 per equity share
Karda Constructions Limited, a Nasik based Karda
Group Company, engaged in construction of residential complexes and
infrastructure projects, proposes to open its initial public offer (IPO) of 43,00,000
equity shares at a price band of Rs. 175/- to 180/- on Friday 16 March 2018. The issue comprises Offer for
Sale of up to 20, 00,000 Equity Shares and fresh issue of up to 23, 00,000
Equity Shares, aggregating up to Rs. 77.40 crores. (at the upper price
band).
Mr. Naresh Karda, Chairman and
Managing Director of Karda Constructions Limited, said “The proceeds from the
fresh issue will be utilised towards reduction of debt, working capital
requirements and issue expenses. Our company has availed certain credit
facilities from different banks as well as term loans from financial
institutions. As part of our long term equity value creation plan we intend to
repay certain portions of our debt which will help maintain a favourable
debt-equity ratio and enhance our leveraging capacity”.
“The company has successfully delivered
over 17 projects totalling 1107 units with total delivered carpet area standing
at 10,50,525 sq. ft. The company is currently developing over 17 lakh sq. ft.
through its 11 on-going and 3 planned projects which are planned to be
delivered over the next few years .The Company is focused on quality and
affordable developments. With an established brand, reputation and track record
of developing innovative projects through emphasis on contemporary
architecture, strong project execution and uncompromising quality, the company
is poised for accelerated growth riding on the wave of its on-going projects
and arrival of fresh projects” Mr Karda Added,
The company after making significant
foot print in the real estate segment is now aggressively looking at new
opportunities in the construction contracts business. It is has been awarded
four prestigious government projects in Goa and Nashik as well as two private
sector construction contracts making the order book of this new vertical at
around Rs. 60 crores. It has obtained Class I-A PWD license and is aiming at
expanding its contractual construction business considering diversification
benefits and economies of scale w.r.t purchase of materials etc.
Company’s total income and net profit
has increased from 43 cr & 2.7cr to Rs 110 cr and 8 cr respectively since
FY2013. Total income and net profit
after tax as restated were L 4,328.65 lakhs and L 270.39 lakhs for the year
ended March 31, 2013, L 5,907.39 lakhs and L 360.55 lakhs for the year ended
March 31, 2014, L 4,653.44 lakhs and L 307.56 lakhs for the year ended March
31, 2015, L 10,593.47 lakhs and L 637.43 lakhs for the year ended March 31,
2016 and L 11,002.26 lakhs and L 803.14 lakhs for the year ended March 31,
2017, showing a CAGR of 19.57 % in profit after tax.
The Karda Group is a well-established
Nashik based group having its presence in the construction industry for more
than two decades. The group was founded by promoter Mr. Naresh Karda in year
1994. In the years following its inception the group concentrated on developing
affordable housing in the residential segment and from year 2001 onwards, the
group diversified into commercial segment. Karda Constructions Limited was
incorporated in 2007 with a view to corporatize the group’s activities in the
real estate sector. Company recently received “Mega Builder of the Year” award
from Divya Marathi.
Comments
Post a Comment