Issue Opens On : June 12, 2007
Issue Closes On : June 19, 2007
Issue Size : 29,00,000 equity shares
Face Value : Rs.10/-
Price Range : Rs. 150 to Rs. 175/-
Issue Type : Book Building
Tick Size : Re.1/-
Market Lot : 40
Minimum Order Qty : 40
Listing Stock Exchange : BSE, NSE
Objects Of the Issue :
Investment in capital equipment
Funding long term working capital requirements
General Corporate Purposes
Meeting the issue expenses
Basis for Issue Price :
Face Value : Rs.10/-
Issue Price : 15 Times(Lower Price Band) of the Face Value.
Issue Price : 17.5 Times(Higher Price Band) of the Face Value.
Issue Price : Rs. 150 to Rs. 175
EPS for the last financial year 2005-06 : Rs.12.78
EPS for the last year (2004-2005) : Rs.5.52
Weighted Average EPS for the years 2003-2006 : Rs.8.66
Industry PE ratio:
Highest : 174.0
Lowest : 2.1
Industry Average : 88.05
PE ratio of RTL Ltd. on the higher side of price band comes out to 13.69 times and on the lower side of the price band comes out to 11.74 times on the basis of EPS for the year ended on 31st march 2006.
PE ratio of the Peer Group
Unity Infrastructure : 13.4
Valecha Engineering : 12.9
Gayatri Projects : 9.7
PBA Infrastructure : 9.9
Industry Overview :
Construction activity is an integral part of a country’s infrastructure and industrial development. It includes hospitals, schools,townships, offices, houses and other buildings, urban infrastructure (including water supply, sewerage, and drainage), highways, roads, ports, railways, airports, power systems, irrigation and agriculture systems, telecommunications etc.
The construction sector in India is the second largest economic activity after agriculture and provides direct or indirect employment to about 32 million people. The sector consumes 40-50 percent of the National Plan outlay and contributes 20 percent of GDP. As per the World Construction Review Outlook 2005-2006, construction spending in India grew at the rate of 7.6% in 2005 and is expected to grow at 7% per annum till 2009.
The boom in infrastructure sector would translate into strong order flow for construction companies.
Business Overview :
RTL is one of the few construction companies in India operating in the area of construction of runways which requires a strict focus on quality to ensure safe take off and landing of aircrafts. The activities carried out by the Company in the highways and roads segment include construction, widening, strengthening, rehabilitation and maintenance of roads (both bitumen and concrete), National Highways and State Highways. The Company also undertakes civil work like construction of container yard, compound walls, casting of heavy RCC sleepers, site levelling and foundation laying for industrial structures.
RTL has been accredited with “ISO 9001:2000” quality management system certificate for construction of Highways and Airports. The company has mainly worked on projects sponsored by Government or Government agencies, including the Central Government, State Governments and Municipalities. Some of the major clients of the company include:
Airports Authority of India (AAI)
Karnataka State Highways Improvement Project
Public Works Department, Mizoram
Military Engineer Service
Roads & Buildings Department, Government of Gujarat
Roads & Buildings Department, Government of Andhra Pradesh
The company has set up a Ready Mix Concrete (RMC) plant at Goregaon Mumbai with an installed capacity of 30 cubic meter / hour to cater to the captive requirements and four automatic stone crushing units to enhance the operational efficiency of the company. The Company has its own construction equipments like mechanical paver finishers, transit mixers, hydraulic excavators, concrete batching plants, mobile crusher and dumpers.
History :
The Company was originally incorporated in the year 1986 in the name of Jerry Varghese Constructions Private Limited. The name of the Company was subsequently changed to Tarmat Infrastructural & Engineering Private Limited with effect from September 12, 1994. The name of the Company was further changed to Roman Tarmat Private Limited with effect from October 17, 2005 and the Company was subsequently converted from Private Limited to Public Limited with effect from December 2, 2005 and the name was changed to Roman Tarmat Limited.
Financial Information :
Total income of the Company for the period ended 31st December, 2006 : Rs. 8464.48 lacs
Total income of the Company for the year ended 31st March, 2006 : Rs. 9093.84 lacs
Total income of the Company for the year ended 31st March, 2005 : Rs. 7729.87 lacs
Net profit (after tax) for the year period ended 31st December, 2006 : Rs.814.59 lacs
Net profit (after Tax) for the year ended 31st March, 2006 : Rs.849.62 lacs
Net profit (after Tax) for the year ended 31st March, 2005 : Rs.366.78 lacs
Comments :
The company has priced the issue aggressively with its post issue PE ratio almost equal to its peers. The strength of the company lies in the strong order book with Government orders and a strong growth potential over next 3 to 5 years. The company has been exhibiting strong growth but currently the situation of listed stocks in construction space is not very good, however one can apply with a long term view as very high listing premium is not expected.
Issue Closes On : June 19, 2007
Issue Size : 29,00,000 equity shares
Face Value : Rs.10/-
Price Range : Rs. 150 to Rs. 175/-
Issue Type : Book Building
Tick Size : Re.1/-
Market Lot : 40
Minimum Order Qty : 40
Listing Stock Exchange : BSE, NSE
Objects Of the Issue :
Investment in capital equipment
Funding long term working capital requirements
General Corporate Purposes
Meeting the issue expenses
Basis for Issue Price :
Face Value : Rs.10/-
Issue Price : 15 Times(Lower Price Band) of the Face Value.
Issue Price : 17.5 Times(Higher Price Band) of the Face Value.
Issue Price : Rs. 150 to Rs. 175
EPS for the last financial year 2005-06 : Rs.12.78
EPS for the last year (2004-2005) : Rs.5.52
Weighted Average EPS for the years 2003-2006 : Rs.8.66
Industry PE ratio:
Highest : 174.0
Lowest : 2.1
Industry Average : 88.05
PE ratio of RTL Ltd. on the higher side of price band comes out to 13.69 times and on the lower side of the price band comes out to 11.74 times on the basis of EPS for the year ended on 31st march 2006.
PE ratio of the Peer Group
Unity Infrastructure : 13.4
Valecha Engineering : 12.9
Gayatri Projects : 9.7
PBA Infrastructure : 9.9
Industry Overview :
Construction activity is an integral part of a country’s infrastructure and industrial development. It includes hospitals, schools,townships, offices, houses and other buildings, urban infrastructure (including water supply, sewerage, and drainage), highways, roads, ports, railways, airports, power systems, irrigation and agriculture systems, telecommunications etc.
The construction sector in India is the second largest economic activity after agriculture and provides direct or indirect employment to about 32 million people. The sector consumes 40-50 percent of the National Plan outlay and contributes 20 percent of GDP. As per the World Construction Review Outlook 2005-2006, construction spending in India grew at the rate of 7.6% in 2005 and is expected to grow at 7% per annum till 2009.
The boom in infrastructure sector would translate into strong order flow for construction companies.
Business Overview :
RTL is one of the few construction companies in India operating in the area of construction of runways which requires a strict focus on quality to ensure safe take off and landing of aircrafts. The activities carried out by the Company in the highways and roads segment include construction, widening, strengthening, rehabilitation and maintenance of roads (both bitumen and concrete), National Highways and State Highways. The Company also undertakes civil work like construction of container yard, compound walls, casting of heavy RCC sleepers, site levelling and foundation laying for industrial structures.
RTL has been accredited with “ISO 9001:2000” quality management system certificate for construction of Highways and Airports. The company has mainly worked on projects sponsored by Government or Government agencies, including the Central Government, State Governments and Municipalities. Some of the major clients of the company include:
Airports Authority of India (AAI)
Karnataka State Highways Improvement Project
Public Works Department, Mizoram
Military Engineer Service
Roads & Buildings Department, Government of Gujarat
Roads & Buildings Department, Government of Andhra Pradesh
The company has set up a Ready Mix Concrete (RMC) plant at Goregaon Mumbai with an installed capacity of 30 cubic meter / hour to cater to the captive requirements and four automatic stone crushing units to enhance the operational efficiency of the company. The Company has its own construction equipments like mechanical paver finishers, transit mixers, hydraulic excavators, concrete batching plants, mobile crusher and dumpers.
History :
The Company was originally incorporated in the year 1986 in the name of Jerry Varghese Constructions Private Limited. The name of the Company was subsequently changed to Tarmat Infrastructural & Engineering Private Limited with effect from September 12, 1994. The name of the Company was further changed to Roman Tarmat Private Limited with effect from October 17, 2005 and the Company was subsequently converted from Private Limited to Public Limited with effect from December 2, 2005 and the name was changed to Roman Tarmat Limited.
Financial Information :
Total income of the Company for the period ended 31st December, 2006 : Rs. 8464.48 lacs
Total income of the Company for the year ended 31st March, 2006 : Rs. 9093.84 lacs
Total income of the Company for the year ended 31st March, 2005 : Rs. 7729.87 lacs
Net profit (after tax) for the year period ended 31st December, 2006 : Rs.814.59 lacs
Net profit (after Tax) for the year ended 31st March, 2006 : Rs.849.62 lacs
Net profit (after Tax) for the year ended 31st March, 2005 : Rs.366.78 lacs
Comments :
The company has priced the issue aggressively with its post issue PE ratio almost equal to its peers. The strength of the company lies in the strong order book with Government orders and a strong growth potential over next 3 to 5 years. The company has been exhibiting strong growth but currently the situation of listed stocks in construction space is not very good, however one can apply with a long term view as very high listing premium is not expected.
