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Consolidated Construction Consortium (CCCL), a provider of integrated turn-key construction services, is open for subscription with an initial public offer (IPO) of 37,00,000 equity shares of Rs 10 each for cash at a price to be decided through a 100% book building process.

The issue will close for subscription on September 21, 2007. The company has fixed the price band between Rs 460 and Rs 510 per equity share.

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

Experts/Company	Poll Result	Experts view
R S Iyer (KR Choksey)	Apply	CCCL is a good issue. The counter demand is very good. People can apply for the issue with intention of listing gain.
Manish Bhatt (Prabhudas Lilladher)	Apply	People can subscribe to the issue.
SP Tulsian (Investment Advisor)	Don't Apply	Consolidated Construction Consortium witnessed a CAGR of 76% in topline and 126% in bottomline, in last 4 years. The post issue equity of the company would be Rs 36.96 crore, and market capitalization at Rs 510 per share, would be Rs 1,900 crore. The company has orders on hand of Rs 2,050 crore as on 31-07-07. Adding debt of Rs 150 crore, enterprise value works out to 1 time of order book.   Nagarjuna Construction has market cap of about Rs 4,500 crore while order on hand of the company is over Rs 8,000 crore. IVRCL Infrastructure market capitalisation is about Rs 4,800 crore, while orders in hand are close to Rs 9,000 crore, apart from having 4 crore shares of IVR Prime with market value of Rs 1,440 crore. The same valuation comparison can be made for so many other pure construction companies, engaged in southern market, and this stock would be found expensive atleast by over 100%.   After Purvankara Projects, probably this is the case of another aggressive pricing and needs to admire the courage of issuer, to ask for such a steep price that too of a company, engaged in a sector for which umpteen number of quality stocks are available in the secondary market.   Just give a pass to the issue, as its fundamental value is not more than Rs 250 per share.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The company will be raised Rs 170.20 crore at lower end of price band and Rs 188.70 crore at higher end.

The equity shares are proposed to be listed on the National Stock Exchange of India and the Bombay Stock Exchange. The issue would constitute 10.01% of the post-issue paid up capital of the company. This issue has been assigned IPO grade 3 by ICRA.

The objects of the issue are to finance the acquisition of construction infrastructure, investment in subsidiaries, expenditures towards skill and management development centre, repayment of loans and expenditure for general corporate purposes.

The total value of its order book as on July 31, 2007, is Rs 20,495.68 million. These projects include industrial structures, IT parks, commercial building, airport terminal buildings, hotel, hospitals and educational institutions

The book running lead managers to the issue are Enam Securities Private Limited and Kotak Mahindra Capital Company Limited while the co-book running lead manager is Spark Capital Advisors (India) Private Limited. Karvy Computershare Pvt Ltd is the registrar to the issue.