PATEL ENGINEERING LTD-IPO
Issue Opens: 03 May, 2006
Issue Closes: 09 May, 2006
Issue Size : 8,500,000 (No. of Shares)
Lower Price Band : Rs.400
Upper Price Band : Rs.440
Application Multiple: 15 and in multiples there off starting with atleast 15 shares.
Information URL : http://www.pateleng.com
Prospectus URL : hthttp://www.sebi.gov.in/dp/pateldraft.pdf
ISSUE Description:
Company Background
Patel Engineering Limited is one of India’s leading civil engineering and construction companies engaged primarily in the civil construction of
· Hydro Power Projects, including dams, tunnels, power houses, barrages etc.
· Irrigation and water supply projects including dams, weirs and pump house and
· Transportation projects including roads, railways, bridges and tunnels.
Hydro Power: Patel Engineering’s core competency lies in construction of civil structures for hydro-power projects. Out of approx 32000 MW generated from hydro-power projects in India, Patel Engineering has participated in construction of hydro-power projects generating more than 7000 MW of power
Irrigation & Water Supply: Looking at the growing opportunity in developing agricultural infrastructure, through lift irrigation, the Company has tried to replicate its expertise in hydro- power projects in this sector. The activities undertaken are impounding the reservoir, construction of pump station, water conducting systems and canals.
Transportation : The focus includes roads, bridges, railway or road tunnel contracts both in India and overseas. The Company has also undertaken marine engineering projects including construction of ports, jetties and dredging activities as well as projects involving the construction of thermal power plants, industrial structures etc.
The Company has two US incorporated subsidiaries viz. ASI RCC Inc. and Westcon Microtunneling Inc. This international presence gives the Company an added advantage of access to use of sophisticated technology like Roller Compacted Concrete (RCC) and microtunneling. The Company is focusing on use of this technology in Indian Markets since it is cost effective and gives competitive advantage.
Objects of the Issue:
The objects of this Issue are to raise equity for financing the growth plans of the Company. The proceeds of the issue, net of issue expenses, will be invested in capital equipment, investments in infrastructure projects, subsidiaries and joint ventures, repayments of debts/advances, meeting working capital requirements, other general corporate purposes etc.
Strenghths
· Business Standard ranked Patel Engineering 6th among civil engineering construction companies on basis of sales in Jan 2006
· Technically and financially qualified to bid for large and complex projects
· Successful execution of project in India and outside including USA, China etc.
· Access to specialized technology like microtunneling and RCC
· A well funded and high quality customer base thereby reducing threat of bad debts
· Consistent track record of profitability and dividend payout
Key Financials
For 2004-2005
Income : Rs.54.90 Crores
Net Profit : 3.79 Crores
RONW : 27.46
EPS :Rs. 7.80
As on December 31, 2005
Income : Rs. 52.71 crores
Net Profit : Rs.5.02 Crores
RONW : 27.06
Net Asset per share : Rs.38.17
EPS : Rs. 10.33
Recommendation:
Looking at the core competency of the company and the opportunites lying ahead in its area of operations, a good issue for both short and long term investor.
Issue Closes: 09 May, 2006
Issue Size : 8,500,000 (No. of Shares)
Lower Price Band : Rs.400
Upper Price Band : Rs.440
Application Multiple: 15 and in multiples there off starting with atleast 15 shares.
Information URL : http://www.pateleng.com
Prospectus URL : hthttp://www.sebi.gov.in/dp/pateldraft.pdf
ISSUE Description:
Company Background
Patel Engineering Limited is one of India’s leading civil engineering and construction companies engaged primarily in the civil construction of
· Hydro Power Projects, including dams, tunnels, power houses, barrages etc.
· Irrigation and water supply projects including dams, weirs and pump house and
· Transportation projects including roads, railways, bridges and tunnels.
Hydro Power: Patel Engineering’s core competency lies in construction of civil structures for hydro-power projects. Out of approx 32000 MW generated from hydro-power projects in India, Patel Engineering has participated in construction of hydro-power projects generating more than 7000 MW of power
Irrigation & Water Supply: Looking at the growing opportunity in developing agricultural infrastructure, through lift irrigation, the Company has tried to replicate its expertise in hydro- power projects in this sector. The activities undertaken are impounding the reservoir, construction of pump station, water conducting systems and canals.
Transportation : The focus includes roads, bridges, railway or road tunnel contracts both in India and overseas. The Company has also undertaken marine engineering projects including construction of ports, jetties and dredging activities as well as projects involving the construction of thermal power plants, industrial structures etc.
The Company has two US incorporated subsidiaries viz. ASI RCC Inc. and Westcon Microtunneling Inc. This international presence gives the Company an added advantage of access to use of sophisticated technology like Roller Compacted Concrete (RCC) and microtunneling. The Company is focusing on use of this technology in Indian Markets since it is cost effective and gives competitive advantage.
Objects of the Issue:
The objects of this Issue are to raise equity for financing the growth plans of the Company. The proceeds of the issue, net of issue expenses, will be invested in capital equipment, investments in infrastructure projects, subsidiaries and joint ventures, repayments of debts/advances, meeting working capital requirements, other general corporate purposes etc.
Strenghths
· Business Standard ranked Patel Engineering 6th among civil engineering construction companies on basis of sales in Jan 2006
· Technically and financially qualified to bid for large and complex projects
· Successful execution of project in India and outside including USA, China etc.
· Access to specialized technology like microtunneling and RCC
· A well funded and high quality customer base thereby reducing threat of bad debts
· Consistent track record of profitability and dividend payout
Key Financials
For 2004-2005
Income : Rs.54.90 Crores
Net Profit : 3.79 Crores
RONW : 27.46
EPS :Rs. 7.80
As on December 31, 2005
Income : Rs. 52.71 crores
Net Profit : Rs.5.02 Crores
RONW : 27.06
Net Asset per share : Rs.38.17
EPS : Rs. 10.33
Recommendation:
Looking at the core competency of the company and the opportunites lying ahead in its area of operations, a good issue for both short and long term investor.
posted by Sensex-Blog Admin at 4:42 AM
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