CRISIL has assigned a CRISIL IPO Grade ’4/5′ to the proposed initial public offer (IPO) of Ashoka Buildcon. This grade indicates that the fundamentals of the IPO are above average relative to the other listed equity securities in India. However, this grade is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals.
The grading takes into account the fact that Ashoka’s BOT (toll) projects are restricted to Maharashtra and Madhya Pradesh. Moreover, despite having the early mover advantage, company has only few large projects in its portfolio. The grading also reflects the company’s strong order book of Rs 17,850 Mn as well as healthy revenue growth potential from the BOT segment.
The company will be using the issue proceed for Investment in capital equipment; to meet working capital requirements; prepayment/ repayment of project loans of the company; funding certain subsidiaries for prepayment/ repayment of their loans; and general corporate purposes. The company has been promoted by Ashok M. Katariya, Satish D. Parakh, Ashish A. Katariya and Aditya S. Parakh
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