B L Kashyap & Sons Ltd. (BLK), is entering the capital market with a public issue of 2,750,000 equity shares of Rs 10 each. There is also a green shoe option of up to 250,000 equity share to be lent by Vineet Kashyap, one of the Company’s promoters. The TIPO is being made as a 100% Book Building Issue.
The price band for the IPO has been fixed at Rs 625 to Rs 700 per equity share. The bid/issue will open on Monday, 20th February and close on Thursday, 23rd February.
The Kashyap family has been in the business of construction and allied services since 1978. The company provides one stop construction solution on “design build” model. The Company’s present activities primarily involve construction services including turnkey projects that comprise civil construction, electrical, plumbing, fire-fighting, air conditioning and other works. The Company also provides a wide range of furnishing and fit-outs through their wholly owned subsidiary “BLK Furnishers and Contractors Private Limited.
The Company has commenced real estate development through tier subsidiary in Pune. They have also established a subsidiary with the name of “Soul Space Projects Limited” for carrying our residential construction activities.
The Company also has a subsidiary “Security Information Systems (India) Limited” which deals in supply, installation, commissioning, servicing of integrated security information systems, building management systems, fire alarm, fire protection system, access control and other security systems.
Broadly, the business activities could be categorized into four segments
- Commercial construction
- Corporate construction
- Residential construction and
- Industrial construction
The Company also caters to the construction needs of diverse sections such as hospitals and hospitality, industrial, IT/ITES, malls and multiplexes. They are also involved in construction turnkey projects catering to residential and corporate office requirements.
This has been made possible due to a capable, efficient, qualified, professional team which has been built over the years. The Company primarily caters to the private sector including reputed organizations like IBM (for Golf Links Software Park Private Limited), Microsoft Corporation (for Gold Links Software Park Private Limited), Oberoi Hotels, Taj Hotels, Hyatt, Fidelity Business Services Private Limited, Cadence Design Systems (India) Private Limited, Adobe Systems India Private Limited, to name a few.
In FY 05, the Company posted a turnover of Rs 3.14 bn and net profit of Rs 121.7 mn. For the six months period ended September 2005, the Company has posted a turnover of Rs 2.07 bn and net profit of Rs 134.8 mn.
BLK is now constantly endeavoring to be associated with larger projects. For instance, they are focused on construction of residential complexes which are of a built up area of over 300,000 – 400,000 sq. ft and in respect of which they contract value would typically exceed Rs 1 billion.
The Company’s current order book aggregates Rs 8.8 bn. The strong demand for housing is now extending to B, C and D grade cities as well, the construction business is now poised for huge growth.
The equity shares of the Company will be listed on the BSE and NSE. Edelweiss Capital Ltd is the Book Running Lead Manager to the issue.