Karda Constructions IPO details and application process

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The IPO of Karda Constructions Limited opens on 16 March and closes on 21 March. The company is offering shares in the price band of Rs 175 - 180.

About the company
Karda Constructions based out of Nashik was established in 1994. The company began with residential housing and later diversified to commercial spaces. The company so far 17 completed projects with 1,107 housing and commercial units with a total delivered carpet area of 10,50,525 sq ft. Aprat from this 17 lakh sq. ft is being currently developed as part of 11 ongoing and 3 planned projects. The company also has a decent land bank totaling 4 lakh sq. ft.

The EPS of the company in 2015, 16 and 17 was Rs .3.08, Rs. 6.37 and Rs. 8.03.
EBITDA rose 26 per cent yoy in 2017 and 36 per cent CAGR over FY15-17 to Rs. 26.5 crore in FY17.
Net profit grew at 26 per cent yoy and 62 per cent CAGR over FY15-17 to Rs. 8 crore for FY17 versus Rs. 6.37 crore in FY16.

Purpose of the issue
The company plans to utilize the proceeds of the issue to pare down it’s debt.

Our company has availed certain credit facilities from different banks as well as term loans from financial institutions. As part of our long term equity value creation plan we intend to repay certain portions of our debt." - Naresh Karda, Chairman and Managing Director.

Issue details
The offer consists of an offer for sale (OFS) of 20,00,000 shares and a fresh issue of 23,00,000 shares.

IPO schedule
Issue opens - March 16th
Issue close - March 21th
Issue size - ₹ 77.4 crores at the upper end of the price band.
Listing on both NSE and BSE
Retail portion - 35%
Bid lot - 80 shares

Basis of allotment - 26 March
Refunds - 27 March
Credit of shares - 28 March
Listing - 2 April

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