IRB Infrastructure Developers, an infrastructure and construction company in India with extensive experience in the roads and highways sector and currently involved in 12 BOT projects in this sector, proposes to enter the capital markets on January 31, 2008 with a public issue of 5,10,57,666 equity shares of Rs 10 each through 100% book building process.

Moneycontrol conducted a poll on market experts to check whether to apply for the public issue or not. Majority of experts said don't apply.

Experts/Company	Poll Result	Experts view
R S Iyer (KR Choksey)	Don’t Apply	People should stay away from IPOs for the time being. They have to wait till the listing of Reliance Power and Future Capital Holdings. Depend on the stability of secondary market, one can enter the capital market as at this stage, people can get good companies at cheap price in current market situation in secondary market. So why should apply for this company at such a high price?
Manish Bhatt (Prabhudas Lilladher)	Apply	IRB Infrastructure is a very good issue. Price band looks reasonable. One should apply for the issue.
SP Tulsian (Investment Advisor)	Don’t Apply	IRB Infrastructure Developers' balance sheet is highly leveraged, the proposed issue, intends to mobilize Rs 723 crore to repay the debt. Only Rs 90 crore is being used for investment in IDAA. Infrastructure P. Ltd., a subsidiary of the company, carrying out expansion and improvement of 65 kms. of Bharuch to Surat section. Financial performance of the company even does not justify the pricing.   The road projects acquired by the company are large in nature with huge upfront payment. Mumbai Pune Expressway and NH4, has 206 km of road, which has project cost of Rs 1,301.64 crore. This is on account of an upfront fee paid to MSRDC of Rs 918 crore and construction cost of Rs 383.64 crore. Operation and maintainance cost is of Rs 754.79 crore for a concession period of 15 years, which commenced on 09-08-2004 and valid upto 10-08-2019. So present validity of this road projects is about 111/2 years. So, about Rs 2,000 crore (of which Rs 1,300 crore having paid) needs  to be recovered in remaining 4,000 days.   The company has been comparing itself with GMR Infra, J P Associates, IVRCL Infra, and Hindustan Construction.   Pure contracting and road project companies are ruling at PE multiple of 15 to 20 times on the secondary market. To justify this valuation, the company needs to earn about Rs 500 crore, annually as PAT, which is not likely in foreseeable future, even after considering development of 1,400 acre of land near Kamshet, Pune.   Overall, issue is very expensive, even at the lower band of Rs 185, as much better diversified, remunerative, and operational infrastructure stocks are available in the secondary market.

The issue closes on February 5, 2008 and the price band has been fixed at Rs 185 to Rs 220 per equity share of Rs 10 each. 

The issue will constitute 15.36% of the fully diluted post-issue equity share capital of the company. The equity shares are proposed to be listed on the BSE and the NSE. The company filed a red herring prospectus with the registrar of companies on January 14, 2008 . 

Deutsche Equities India Private Ltd is the sole global coordinator and BRLM for the issue and Kotak Mahindra Capital Co. Ltd is the Co-BRLM for the issue.

The company proposes to utilize the net proceeds of the issue for investment in subsidiary IDAA; prepayment and repayment of existing loans of the company and the subsidiaries Aryan Toll Road Pvt. Ltd, Modern Road Makers Pvt. Ltd, Thane Ghodbunder Toll Road Pvt. Ltd, NKT Road & Toll Pvt. Ltd and Mhaiskar Infrastructure Pvt. Ltd. 
 
IRB Infrastructure Developers is currently involved in 12 BOT projects in the roads and highways sector. Out of these projects, 11 projects are in the operational phase, i.e., engineering, procurement and construction phases have been completed on these projects and the project SPVs are currently earning revenues from toll collection under the relevant concession agreements.

Currently, the company's land reserves consist of approximately 925 acres of land in the Mauje Taje and Mauje Pimploli Taluka in Pune district, and it intends to acquire an additional approximately 475 acres of land for its proposed township project.
 
In fiscal 2007, the consolidated total income of the company was Rs 325.08 crore and it earned consolidated net profit, as restated, of Rs 29.96 crore. In the five months ended August 31, 2007, consolidated total income was Rs 285.26 crore and it earned consolidated net profit, as restated, of Rs 36.38 crore in this period.