B.L. Kashyap & Sons is entering the capital market on February 20 with a public issue of 27,50,000 equity shares of Rs 10 each through a 100% book building route.
There is also a greenshoe option of upto 2,50,000 equity shares to be lent by Vineet Kashyap, one of the company’s promoters. The IPO 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 issue will open on February 20, 2006 and close on February 23, 2006.
The Kashyap family has been in the business of construction and allied services since 1978.
The company provides construction solutions 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 out through their wholly owned subsidiary “BLK Furnishers and Contractors”.
The company has commenced real estate development through their subsidiary in Pune. They have also established a subsidiary with the name of “Soul Space Projects” for carrying out residential construction activities.
The company also has a subsidiary “Security Information Systems (India)” 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.
The company primarily caters to the private sector including reputed corporates like IBM (for Golf Link Software Park), Microsoft Corporation (for Golf Link Software Park), Oberoi Hotels, Taj Hotels, Hyatt, Fidelity Business Services, Cadence Design Systems (India), Adobe Systems India, to name a few.
In FY05, the company posted a turnover of Rs 314 crore (Rs 3.14) billion and net profit of Rs 12.17 crore (Rs 121.7 million). For the six months period ended September 2005, the company has posted a turnover of Rs 207.86 crores (Rs 2.07 billion) and net profit of Rs 13.49 crore (Rs 134.9 million).
The company’s order book as on September 30, 2005 stood at Rs 579 crore (Rs 5.79 billion). The company has since then bagged orders of over Rs 300 crore (Rs 3 billion).
The equity shares of the company will be listed on the BSE and NSE. Edelweiss Capital is the book running lead manager to the issue.