C&C Const: Planning to raise Rs 150 cr from IPO

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C&C Constructions, an infrastructure project development company, is coming up with a public issue of 54.77 lakh shares.

Chairman of C&C Constructions, Gurjeet Singh Johar gives the details of the IPO, along with the company's business. Currently, the company has an order book of Rs 900 crore, which is to be completed over the next two years, he informs.

Excerpts from CNBC-TV18's exclusive interview with Gurjeet Singh Johar:

Q: What's the issue size? How much money are you planning to raise? And any pre-IPO placements?

A: We are issuing 54 lakh shares of which 12 lakh shares have been issued in the pre-IPO.

Q: At what price have you issued these shares?

A: At Rs 275.  

Q: We understand that 65% of your revenues come from projects in Afghanistan, and another line in India comes from B Seenaiah & Co projects. While the Afghanistan leg must be a high reward, it is also a high risk project. Can you outline the risks that you might face in that sector?

A: We are delisting the Afghanistan business by adding on large amounts of projects in the Indian sector. About 12% of the orders are from Afghanistan, while the balance 88% is from India.

Q: What is the order book size?

A: It is about Rs 900 crore.

Q: How many of these orders are BOT (Build, Operate and Transfer) projects?

A: The BOT projects are about Rs 220 crore from Kurali to Kiratpur in Punjab.

Q: Will the Rs 150 crore that you are looking to raise from this IPO be channeled towards developing that project only or are you also looking at a pipeline build-up for BOT projects?

A: We are looking at other BOT projects too, but about Rs 85 crore would go into BOT projects currently envisaged. The balance is on capital expenditure and working capital.

Q: What do you expect your order book to be like in the next 12 months?

A: The order book is a function of my bid and currently, I am on a bid capacity of Rs 1,200 crore. I expect that to go about Rs 1,800 crore by the end of the year.

Q: Apart from the investment in BOT projects, you also have capex plans. Could you take us through those?

A: The capex plans are primarily meant to take care of our equipment requirement for the current projects on hand. We are currently investing Rs 27 crore in equipments for some of our projects.

Q: What kind of growth are you targeting in your kind of business at this point in time?

A: We are currently sitting on an order book of Rs 900 crore, which I need to finish over the next two years.

Q: What rate have you been growing at over the past one year for FY07 over FY06?

A: In FY06, we grew at about 30%.

Q: Do you expect to maintain that growth?

A: I have to finish the Rs 900 crore over the next two years.