MAYTAS INFRASTRUCTURE
MAX. ISSUE SIZE (Rs) : 327 crores
PRICE BAND (Rs) : 320 - 370
ISSUE OPENS/CLOSES : 27th September 2007 to 4th October, 2007
LISTING : BSE, NSE.
A Satyam group backed Hyderabad-based construction and infrastructure development company, Maytas Infrastructure is raising funds to finance the purchase of construction equipment, invest in associate companies and meet other project-related investment commitments.
In the construction segment, the company’s primary interests include irrigation, roads and bridges and buildings. Of late, the company has also added civil construction in the power, industrial structures, oil and gas infrastructure, and railway sectors to its portfolio.It is also targeting the emerging opportunities in sub-segments like water and waste-water management, SEZ’s, urban infrastructure, ports and airport sectors.
On the SWOT snapshot scales, the primary concerns include geographical revenue concentration in Southern India and the non-commencement of commercial operations of one of its large projects in Andhra which it closed out in September 2006, due to the unavailability of natural gas.
The plethora of group companies (41) and trademark related issues is another concern area, as is the shortage of coal supply to operate the company’s KVK Nilachal power station project in Orissa in which it has an equity interest of 50 per cent.
The primary positives include a fairly diversified business model and a highly qualified and skilled management team and vertical heads. Whereas the order book approximating Rs.3600 crore is impressive, its quality and the fact that the same will be executed over the next 18 to 36 months provides superior visibility.
Notably, 37 per cent of the order book reflect higher-margin irrigation projects. Another plus is that unlike in the past, barely 20 per cent of the contracts reflected in its order-book are of the fixed cost variety thus reducing the company’s vulnerability to input cost upswings.
Notwithstanding the company’s differences of opinion with its auditors on accounting standards related issues, the financial track record of the company reflects a healthy picture. The company scores well on the OPM and RONW fronts and even though the P/E demand of 40 plus is tight , there is every likelihood of investors backing the potency of the infrastructure sector and the scalability of this company’s business therein.
MAX. ISSUE SIZE (Rs) : 327 crores
PRICE BAND (Rs) : 320 - 370
ISSUE OPENS/CLOSES : 27th September 2007 to 4th October, 2007
LISTING : BSE, NSE.
A Satyam group backed Hyderabad-based construction and infrastructure development company, Maytas Infrastructure is raising funds to finance the purchase of construction equipment, invest in associate companies and meet other project-related investment commitments.
In the construction segment, the company’s primary interests include irrigation, roads and bridges and buildings. Of late, the company has also added civil construction in the power, industrial structures, oil and gas infrastructure, and railway sectors to its portfolio.It is also targeting the emerging opportunities in sub-segments like water and waste-water management, SEZ’s, urban infrastructure, ports and airport sectors.
On the SWOT snapshot scales, the primary concerns include geographical revenue concentration in Southern India and the non-commencement of commercial operations of one of its large projects in Andhra which it closed out in September 2006, due to the unavailability of natural gas.
The plethora of group companies (41) and trademark related issues is another concern area, as is the shortage of coal supply to operate the company’s KVK Nilachal power station project in Orissa in which it has an equity interest of 50 per cent.
The primary positives include a fairly diversified business model and a highly qualified and skilled management team and vertical heads. Whereas the order book approximating Rs.3600 crore is impressive, its quality and the fact that the same will be executed over the next 18 to 36 months provides superior visibility.
Notably, 37 per cent of the order book reflect higher-margin irrigation projects. Another plus is that unlike in the past, barely 20 per cent of the contracts reflected in its order-book are of the fixed cost variety thus reducing the company’s vulnerability to input cost upswings.
Notwithstanding the company’s differences of opinion with its auditors on accounting standards related issues, the financial track record of the company reflects a healthy picture. The company scores well on the OPM and RONW fronts and even though the P/E demand of 40 plus is tight , there is every likelihood of investors backing the potency of the infrastructure sector and the scalability of this company’s business therein.
