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RED HERRING PROSPECTUSDated July 21, 2016
Please read Section 32 of the Companies Act, 2013Book Built Issue
DIlIP BUIlDCON lImITED INFRASTRUCTURE & BEYOND
Our Company was incorporated as Dilip Buildcon Private Limited on June 12, 2006 as a private limited company under the Companies Act, 1956, with the Registrar of Companies, Madhya Pradesh at Gwalior (the “RoC”). Our Company was converted into a public limited company and consequently, the name of our Company was changed to Dilip Buildcon Limited and a fresh certificate of incorporation was issued by the RoC on August 26, 2010. For further details of change in the name and registered office of our Company, please see the section entitled “History and Certain Corporate Matters” on page 179.
Registered and Corporate Office: Plot No. 5, Inside Govind Narayan Singh Gate, Chuna Bhatti, Kolar Road, Bhopal 462 016, Madhya Pradesh Contact Person: Abhishek Shrivastava, Company Secretary and Compliance Officer; Tel: +91 755 4029999; Fax: +91 755 4029998
E-mail: [email protected]; Website: www.dilipbuildcon.co.in Corporate Identity Number: U45201MP2006PLC018689
OUR PROMOTERS: DILIP SURYAVANSHI, SEEMA SURYAVANSHI, DEVENDRA JAIN AND SURYAVANSHI FAMILY TRUST
PUBLIC ISSUE OF UP TO [●] EQUITY SHARES OF FACE VALUE OF ` 10 EACH (THE “EQUITY SHARES”) OF DILIP BUILDCON LIMITED (“OUR COMPANY” OR THE “ISSUER”) FOR CASH AT A PRICE OF ` [●] PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF ` [●] PER EQUITY SHARE) AGGREGATING UP TO ` [●] MILLION (THE “ISSUE”) COMPRISING A FRESH ISSUE OF UP TO [●] EQUITY SHARES AGGREGATING UP TO ` 4,300 MILLION (THE “FRESH ISSUE”) AND AN OFFER FOR SALE OF UP TO 1,136,364 EQUITY SHARES BY DILIP SURYAVANSHI, UP TO 1,136,364 EQUITY SHARES BY DEVENDRA JAIN (DILIP SURYAVANSHI AND DEVENDRA JAIN, COLLECTIVELY REFERRED TO AS THE “PROMOTER SELLING SHAREHOLDERS”) AND UP TO 7,954,545 EQUITY SHARES BY BANYANTREE GROWTH CAPITAL, LLC (THE “INVESTOR SELLING SHAREHOLDER”) (THE PROMOTER SELLING SHAREHOLDERS AND THE INVESTOR SELLING SHAREHOLDER COLLECTIVELY, THE “SELLING SHAREHOLDERS”) AGGREGATING UP TO ` [●] MILLION (THE “OFFER FOR SALE” AND TOGETHER WITH THE FRESH ISSUE, THE “ISSUE”). THE ISSUE WILL CONSTITUTE [●] % OF OUR POST-ISSUE PAID-UP EQUITY SHARE CAPITAL.
THE FACE VALUE OF THE EQUITY SHARES IS ` 10 EACH. OUR COMPANY AND THE SELLING SHAREHOLDERS MAY, IN CONSULTATION WITH THE BOOK RUNNING LEAD MANAGERS, OFFER A DISCOUNT OF UP TO [●]% (EQUIVALENT TO ` [●]) ON THE ISSUE PRICE TO RETAIL INDIVIDUAL BIDDERS (“RETAIL DISCOUNT”). THE PRICE BAND, THE RETAIL DISCOUNT AND THE MINIMUM BID LOT WILL BE DECIDED BY OUR COMPANY AND THE SELLING SHAREHOLDERS IN CONSULTATION WITH THE BOOK RUNNING LEAD MANAGERS (“BRLMS”) AND WILL BE ADVERTISED IN ALL EDITIONS OF BUSINESS STANDARD (A WIDELY CIRCULATED ENGLISH NATIONAL DAILY NEWSPAPER) AND ALL EDITIONS OF BUSINESS STANDARD (A WIDELY CIRCULATED HINDI NATIONAL DAILY NEWSPAPER WITH WIDE CIRCULATION IN MADHYA PRADESH) AT LEAST FIVE WORKING DAYS PRIOR TO THE BID/ISSUE OPENING DATE.In case of any revision to the Price Band, the Bid/Issue Period will be extended by three additional Working Days after such revision of the Price Band, subject to the total Bid/Issue Period not exceeding 10 Working Days. Any revision in the Price Band and the revised Bid/Issue Period, if applicable, will be widely disseminated by notification to the BSE Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE”), by issuing a press release, and also by indicating the change on the website of the BRLMs and at the terminals of the other members of the Syndicate.In terms of Rule 19(2)(b)(ii) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”), this is an Issue for at least such percentage of the post-Issue Equity Share capital of our Company that will be equivalent to ` 4,000 million calculated at the Issue Price. The Issue is being made through the Book Building Process in accordance with Regulation 26(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 (“SEBI Regulations”) wherein not more than 50% of the Issue shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (the “QIB Portion”), provided that our Company and the Selling Shareholders, in consultation with the BRLMs, may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis. One-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. 5% of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Issue Price. Further, not less than 15% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Issue shall be available for allocation to Retail Individual Bidders in accordance with the SEBI Regulations, subject to valid Bids being received at or above the Issue Price. All potential Bidders, other than Anchor Investors, are required mandatorily to utilise the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective bank accounts which will be blocked by the Self Certified Syndicate Banks (“SCSBs”) to participate in the Issue. For details, please see the section entitled “Issue Procedure” on page 454.
RISK IN RELATION TO THE FIRST ISSUE
This being the first public issue of our Company, there has been no formal market for the Equity Shares of our Company. The face value of the Equity Shares is `10 and the Floor Price is [●] times the face value and the Cap Price is [●] times the face value. The Issue Price (determined and justified by our Company in consultation with the Selling Shareholders and the BRLMs as stated under the section entitled “Basis for Issue Price” on page 105) should not be taken to be indicative of the market price of the Equity Shares after the Equity Shares are listed. No assurance can be given regarding an active or sustained trading in the Equity Shares or regarding the price at which the Equity Shares will be traded after listing.
GENERAL RISKSInvestments in equity and equity-related securities involve a degree of risk and investors should not invest any funds in the Issue unless they can afford to take the risk of losing their entire investment. Investors are advised to read the risk factors carefully before taking an investment decision in the Issue. For taking an investment decision, investors must rely on their own examination of our Company and the Issue, including the risks involved. The Equity Shares in the Issue have not been recommended or approved by the Securities and Exchange Board of India (“SEBI”), nor does SEBI guarantee the accuracy or adequacy of the contents of the Red Herring Prospectus. Specific attention of the investors is invited to the section entitled “Risk Factors” on page 15.
ISSUER’S AND SELLING SHAREHOLDERS’ ABSOLUTE RESPONSIBILITYOur Company, having made all reasonable inquiries, accepts responsibility for and confirms that this Red Herring Prospectus contains all information with regard to our Company and the Issue, which is material in the context of the Issue, that the information contained in this Red Herring Prospectus is true and correct in all material aspects and is not misleading in any material respect, that the opinions and intentions expressed herein are honestly held and that there are no other facts, the omission of which makes this Red Herring Prospectus as a whole or any of such information or the expression of any such opinions or intentions misleading in any material respect. Further, each of the Promoter Selling Shareholders severally accept responsibility that this Red Herring Prospectus contains all information about him as a Selling Shareholder in the context of the Offer for Sale and further assumes responsibility for statements in relation to him included in this Red Herring Prospectus. The Investor Selling Shareholder accepts responsibility only for statements specifically made by the Investor Selling Shareholder in this Red Herring Prospectus with respect to itself and the Equity Shares offered by it in the Offer for Sale, and that such statements are true, complete and correct in all material respects and are not misleading in any material respect.
lISTINGThe Equity Shares offered through this Red Herring Prospectus are proposed to be listed on the BSE and the NSE. Our Company has received an ‘in-principle’ approval from the BSE and the NSE for the listing of the Equity Shares pursuant to letters dated February 16, 2016 and February 15, 2016, respectively. For the purposes of the Issue, BSE will be the Designated Stock Exchange. A copy of this Red Herring Prospectus has been delivered to the RoC and a copy of the Prospectus shall be delivered for registration to the RoC in accordance with Section 26(4) of the Companies Act, 2013. For details of the material contracts and documents available for inspection from the date of this Red Herring Prospectus up to the Bid/Issue Closing Date, please see the section entitled “Material Contracts and Documents for Inspection” on page 509.
BOOK RUNNING LEAD MANAGERS REGISTRAR TO THE ISSUE
Axis Capital LimitedAxis House, 1st Floor, C-2, Wadia International Center, P. B. Marg, Worli Mumbai 400 025, Maharashtra Tel: +91 22 4325 1199 Fax: +91 22 4325 3000 E-mail: [email protected] Investor grievance e-mail: [email protected] Website: www.axiscapital.co.in Contact Person: Akash Aggarwal SEBI Registration No.: INM000012029
IIFl Holdings limited10th Floor, IIFL Centre Kamala City, Senapati Bapat Marg, Lower Parel (West), Mumbai 400 013 Maharashtra, India Tel: +91 22 4646 4600 Fax: +91 22 2493 1073 E-mail: [email protected] Investor grievance E-mail: [email protected] Website: www.iiflcap.com Contact Person: Gururaj Sundaram/ Kunur Bavishi SEBI Registration No.: INM000010940
JM Financial Institutional Securities limited* 7th Floor, Cnergy, Appasaheb Marathe Marg, Prabhadevi, Mumbai 400 025 Maharashtra Tel: +91 22 6630 3030 Fax: +91 22 6630 3330 E-mail: [email protected] Investor Grievance E-mail: [email protected] Website: www.jmfl.com Contact Person: Lakshmi Lakshmanan SEBI Registration No.: INM000010361* Formerly JM Financial Institutional Securities Private Limited
PNB Investment Services Limited PNB Pragati Towers, 2nd Floor, C-9, G-Block, Bandra Kurla Complex, Bandra (East), Mumbai 400 051 Maharashtra Tel: +91 22 2653 2745 Fax: +91 22 2653 2687 E-mail: [email protected] Investor grievance e-mail: [email protected] Website: www.pnbisl.com Contact Person: Vinay N. Rane SEBI Registration No.: INM000011617
link Intime India Private limited C-13, Pannalal Silk Mills Compound, L.B.S. Marg, Bhandup (West) Mumbai 400 078, Maharashtra Tel: +91 22 6171 5400 Fax: +91 22 2596 0329 E-mail: [email protected] Investor Grievance e-mail: [email protected] Website: www.linkintime.co.in Contact Person: Shanti Gopalkrishnan SEBI Registration No.: INR000004058
BID/ISSUE PROGRAMMEBID/ISSUE OPENS ON AUGUST 1, 2016, MONDAY (1)
BID/ISSUE ClOSES ON AUGUST 3, 2016, WEDNESDAY(1)Our Company and the Selling Shareholders shall, in consultation with the BRLMs, consider participation by Anchor Investors in accordance with the SEBI Regulations. The Anchor Investor Bid/Issue Period shall be one Working Day prior to the Bid/Issue Opening Date.
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TABLE OF CONTENTS
SECTION I: GENERAL ...................................................................................................................................... 1
DEFINITIONS AND ABBREVIATIONS ........................................................................................................ 1 PRESENTATION OF FINANCIAL, INDUSTRY AND MARKET DATA ................................................... 12 FORWARD-LOOKING STATEMENTS ....................................................................................................... 14
SECTION II: RISK FACTORS ........................................................................................................................ 15
SECTION III: INTRODUCTION .................................................................................................................... 55
SUMMARY OF INDUSTRY .......................................................................................................................... 55 SUMMARY OF OUR BUSINESS .................................................................................................................. 59 SUMMARY OF FINANCIAL INFORMATION ............................................................................................ 67 THE ISSUE ...................................................................................................................................................... 74 GENERAL INFORMATION .......................................................................................................................... 76 CAPITAL STRUCTURE ................................................................................................................................ 86 OBJECTS OF THE ISSUE .............................................................................................................................. 97 BASIS FOR ISSUE PRICE ........................................................................................................................... 105 STATEMENT OF TAX BENEFITS ............................................................................................................. 109
SECTION IV: ABOUT OUR COMPANY ..................................................................................................... 123
INDUSTRY OVERVIEW ............................................................................................................................. 123 OUR BUSINESS ........................................................................................................................................... 143 REGULATIONS AND POLICIES ................................................................................................................ 175 HISTORY AND CERTAIN CORPORATE MATTERS ............................................................................... 179 OUR SUBSIDIARIES ................................................................................................................................... 184 OUR MANAGEMENT ................................................................................................................................. 196 OUR PROMOTERS AND PROMOTER GROUP ........................................................................................ 215 OUR GROUP COMPANIES ......................................................................................................................... 220 RELATED PARTY TRANSACTIONS ........................................................................................................ 226 DIVIDEND POLICY ..................................................................................................................................... 227
SECTION V: FINANCIAL INFORMATION ............................................................................................... 228
FINANCIAL STATEMENTS ....................................................................................................................... 228 FINANCIAL INDEBTEDNESS ................................................................................................................... 351 MANAGEMENT‘S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS .............................................................................................................................................. 384 SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN INDIAN GAAP AND IND AS ................... 405
SECTION VI: LEGAL AND OTHER INFORMATION ............................................................................. 409
OUTSTANDING LITIGATIONS AND MATERIAL DEVELOPMENTS .................................................. 409 GOVERNMENT AND OTHER APPROVALS ............................................................................................ 429 OTHER REGULATORY AND STATUTORY DISCLOSURES ................................................................. 431
SECTION VII: ISSUE INFORMATION ....................................................................................................... 446
TERMS OF THE ISSUE ................................................................................................................................ 446 ISSUE STRUCTURE .................................................................................................................................... 451 ISSUE PROCEDURE .................................................................................................................................... 454 RESTRICTIONS ON FOREIGN OWNERSHIP OF INDIAN SECURITIES ............................................... 497
SECTION VIII: MAIN PROVISIONS OF ARTICLES OF ASSOCIATION............................................ 498
PART A OF THE ARTICLES OF ASSOCIATION ..................................................................................... 498 PART B OF THE ARTICLES OF ASSOCIATION ..................................................................................... 505
SECTION IX: OTHER INFORMATION ..................................................................................................... 509
MATERIAL CONTRACTS AND DOCUMENTS FOR INSPECTION ....................................................... 509 DECLARATION ........................................................................................................................................... 511
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SECTION I: GENERAL
DEFINITIONS AND ABBREVIATIONS
This Red Herring Prospectus uses certain definitions and abbreviations which, unless the context otherwise
indicates or implies, shall have the meaning as provided below. References to any legislation, act, regulation,
rule, guideline or policy shall be to such legislation, act, regulation, rule, guideline or policy, as amended,
supplemented or re-enacted from time to time.
The words and expressions used in this Red Herring Prospectus but not defined herein, shall have, to the extent
applicable, the meanings ascribed to such terms under the Companies Act, the SEBI Regulations, the SCRA, the
Depositories Act or the rules and regulations made thereunder.
Notwithstanding the foregoing, terms used in of the sections entitled ―Statement of Tax Benefits‖, ―Financial
Statements‖ and ―Main Provisions of Articles of Association‖ on pages 109, 228 and 498, respectively, shall
have the meaning ascribed to such terms in such sections.
General Terms
Term Description
―our Company‖, the
―Company‖, or the ―Issuer‖
Dilip Buildcon Limited, a company incorporated under the Companies Act,
1956, having its registered and corporate office situated at Plot No. 5, Inside
Govind Narayan Singh Gate, Chuna Bhatti, Kolar Road, Bhopal 462 016,
Madhya Pradesh
we/us/our Unless the context otherwise indicates or implies, our Company, its
Subsidiaries and its Joint Ventures, on a consolidated basis
Company Related Terms
Term Description
Articles of Association The articles of association of our Company, as amended
Audit Committee The audit committee of the Board of Director described in the section entitled
―Our Management‖ on page 196
Auditors/Statutory Auditors The joint statutory auditors of our Company, Mukund M. Chitale & Co.,
Chartered Accountants and Naresh Rajani & Co., Chartered Accountants
Board/Board of Directors The board of directors of our Company or a duly constituted committee
thereof
BTGC Agreement The subscription and shareholders‘ agreement dated February 14, 2012
entered into between our Company, our Promoters and BanyanTree Growth
Capital, LLC as amended on March 27, 2015 and January 27, 2016
Compulsorily Convertible
Preference Shares
0.01% compulsorily convertible preference shares of our Company of face
value `100,000 each
Director(s) The director(s) of our Company
Equity Shares The equity shares of our Company of face value of `10 each
Group Companies Companies which are covered under the applicable accounting standards and
other companies as considered material by our Board. For details, please see
the section entitled ―Our Group Companies‖ on page 220
Investor Selling Shareholder BanyanTree Growth Capital, LLC, a company incorporated under the laws of
Mauritius with its principal office at 13, Nexteracom 1, Cybercity, Ebene,
Mauritius
Joint Ventures The joint ventures formed by our Company, namely, (i) ‗Valecha Dilip JV‘
(formed in partnership with Valecha Engineering Limited); (ii) ‗Dilip
Buildcon Private Limited and ITS Infrastructure Private Limited (JV)‘ (formed
in partnership with ITS Infrastructure Private Limited); (iii) KCC Buildcon
Private Limited-Dilip Buildcon Limited JV; (iv) Dilip Buildcon Ltd. & Ranjit
Buildcon Ltd. JV; (v) Dilip Buildcon - Varaha Infra Limited (JV) (formed for
bidding for Ghaghra Bridge to Varanasi section of NH-233 (Pkg-I) project);
(vi) Dilip Buildcon Limited-Varaha Infra Limited (JV) (bidding for Ambala-
Kaithal Section of NH-65); (vii) Dilip Buildcon Limited-Mostobudivelnyi
Zahin No. 112 Limited Liability Company; (DBL -MBZ (JV) ) (bidding for
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Term Description
Construction of Bridge across River Zuari (Package II); (viii) Dilip Buildcon -
SPML JV (ix) DBL -MBZ (JV) (bidding for Construction of Bridge across
River Zuari (Package I); and (x) DBL -MBZ (JV) (bidding for Construction of
Bridge across River Zuari (Package III)
Key Management Personnel Key management personnel of our Company in terms of the Companies Act,
2013 and the SEBI Regulations as disclosed in the section entitled ―Our
Management‖ on page 196
Memorandum of Association The memorandum of association of our Company
Promoters The promoters of our Company namely, Dilip Suryavanshi, Seema
Suryavanshi, Devendra Jain and Suryavanshi Family Trust. For details, please
see the section entitled ―Our Promoters and Promoter Group‖ on page 215
Promoter Group Persons and entities constituting the promoter group of our Company in terms
of Regulation 2(1)(zb) of the SEBI Regulations. For details, please see the
section entitled ―Our Promoters and Promoter Group‖ on page 215
Promoter Selling Shareholders Dilip Suryavanshi and Devendra Jain
Registered and Corporate
Office
Registered and corporate office of our Company situated at Plot No. 5, Inside
Govind Narayan Singh Gate, Chuna Bhatti, Kolar Road, Bhopal 462 016,
Madhya Pradesh
Shareholders Shareholders of our Company
Subsidiaries Subsidiaries of our Company set out in the section entitled ―Our Subsidiaries‖
on page 184
Issue Related Terms
Term Description
Acknowledgement Slip The slip or document issued by the Designated Intermediary to a Bidder as
proof of registration of the Bid cum Application Form
Allot/Allotment/Allotted Unless the context otherwise requires, allotment of the Equity Shares pursuant
to the Fresh Issue and transfer of the Equity Shares offered by the Selling
Shareholders pursuant to the Offer for Sale to the Allottees
Allottee A successful Bidder to whom the Equity Shares are Allotted
Allotment Advice Note, advice or intimation of Allotment sent to the Bidders who have been or
are to be Allotted the Equity Shares after the Basis of Allotment has been
approved by the Designated Stock Exchange
Anchor Investor A Qualified Institutional Buyer, applying under the Anchor Investor Portion in
accordance with the requirements specified in the SEBI Regulations and this
Red Herring Prospectus
Anchor Investor Allocation
Price
Price at which Equity Shares are allocated to Anchor Investors in terms of the
Red Herring Prospectus, decided by our Company in consultation with the
Selling Shareholders and the BRLMs
Anchor Investor Application
Form
The form used by an Anchor Investor to make a Bid in the Anchor Investor
Portion and which will be considered as an application for Allotment in terms
of this Red Herring Prospectus and Prospectus
Anchor Investor Bid/Issue
Period
One Working Day prior to the Bid/Issue Opening Date, on which Bids by
Anchor Investors shall be submitted
Anchor Investor Issue Price Final price at which the Equity Shares will be Allotted to Anchor Investors in
terms of the Red Herring Prospectus and the Prospectus, which price will be
equal to or higher than the Issue Price but not higher than the Cap Price
The Anchor Investor Issue Price will be decided by our Company and the
Selling Shareholders in consultation with the BRLMs
Anchor Investor Portion Up to 60% of the QIB Portion consisting of up to [●] Equity Shares which may be allocated by our Company and the Selling Shareholders in consultation
with the BRLMs to Anchor Investors on a discretionary basis
One-third of the Anchor Investor Portion shall be reserved for Mutual Funds,
subject to valid Bids being received from Mutual Funds at or above the price
at which allocation is being done to Anchor Investors
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Term Description
Application Supported by
Blocked Amount or ASBA
An application, whether physical or electronic, used by ASBA Bidders to
make a Bid by authorising an SCSB to block the Bid Amount in the ASBA
Account
ASBA Account A bank account maintained with an SCSB and specified in the ASBA Form
for blocking the Bid Amount mentioned in the ASBA Form
ASBA Bid A Bid made by an ASBA Bidder including all revisions and modifications
thereto as permitted under the SEBI Regulations
ASBA Bidder All Bidders other than Anchor Investors
ASBA Form An application form, whether physical or electronic, used by ASBA Bidders
which will be considered as the application for Allotment in terms of the Red
Herring Prospectus and the Prospectus
Basis of Allotment The basis on which the Equity Shares will be Allotted to successful Bidders
under the Issue and which is described in the section entitled ―Issue
Procedure‖ on page 454
Bid An indication to make an offer during the Bid/Issue Period by an ASBA
Bidder pursuant to submission of the ASBA Form, or during the Anchor
Investor Bid/Issue Period by an Anchor Investor pursuant to submission of the
Anchor Investor Application Form, to subscribe to or purchase the Equity
Shares of our Company at a price within the Price Band, including all
revisions and modifications thereto as permitted under the SEBI Regulations
Bid Amount The highest value of optional Bids indicated in the Bid cum Application Form
and payable by the Bidder or blocked in the ASBA Account of the Bidder, as
the case may be, upon submission of the Bid in the Issue, which shall be net of
Retail Discount for Retail Individual Bidders
Bid cum Application Form The Anchor Investor Application Form or the ASBA Form, as the context
requires
Bid/Issue Closing Date Except in relation to any Bids received from the Anchor Investors, the date
after which the Designated Intermediaries will not accept any Bids, which
shall be published in (i) all editions of Business Standard (a widely circulated
English national daily newspaper); and (ii) all editions of Business Standard (a
widely circulated Hindi national daily newspaper with wide circulation in
Madhya Pradesh)
Bid/Issue Opening Date Except in relation to any Bids received from the Anchor Investors, the date on
which the Designated Intermediaries shall start accepting Bids, which shall be
published in (i) all editions of Business Standard (a widely circulated English
national daily newspaper); and (ii) all editions of Business Standard (a widely
circulated Hindi national daily newspaper with wide circulation in Madhya
Pradesh)
Bid/Issue Period Except in relation to Anchor Investors, the period between the Bid/Issue
Opening Date and the Bid/Issue Closing Date, inclusive of both days, during
which Bidders can submit their Bids, including any revisions thereof
Bid Lot [●] Equity Shares
Bidder Any prospective investor who makes a Bid pursuant to the terms of the Red
Herring Prospectus and the Bid cum Application Form and unless otherwise
states or implies, includes an Anchor Investor
Bidding Centers Centers at which the Designated Intermediaries shall accept ASBA Forms, i.e,
Designated SCSB Branch for SCSBs, Specified Locations for Syndicate,
Broker Centres for Registered Brokers, Designated RTA Locations for RTAs
and Designated CDP Locations for CDPs
Book Building Process The book building process, as provided in Schedule XI of the SEBI
Regulations, in terms of which the Issue is being made
Book Running Lead Managers/
BRLMs
The book running lead managers to the Issue namely, Axis Capital Limited,
IIFL Holdings Limited, JM Financial Institutional Securities Limited and PNB
Investment Services Limited
Broker Centres Broker centers notified by the Stock Exchanges where Bidders can submit the
ASBA Forms to a Registered Broker
The details of such Broker Centers, along with the names and contact details
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Term Description
of the Registered Brokers are available on the websites of the respective Stock
Exchanges (www.bseindia.com and www.nseindia.com)
CAN/Confirmation of
Allocation Note
Notice or intimation of allocation of the Equity Shares sent to Anchor
Investors, who have been allocated the Equity Shares, after the Anchor
Investor Bid/Issue Period
Cap Price The higher end of the Price Band, being ` [●] per Equity Share, above which
the Issue Price will not be finalised and above which no Bids will be accepted
Cash Escrow Agreement The agreement dated July 19, 2016 entered into between our Company, the
Selling Shareholders, the Registrar to the Issue, the BRLMs, the Escrow
Collection Bank(s) and the Refund Bank(s) for collection of the Bid Amounts
from Anchor Investors, transfer of funds to the Public Issue Account and
where applicable, refunds of the amounts collected from Anchor Investors, on
the terms and conditions thereof
Client ID Client identification number maintained with one of the Depositories in
relation to a demat account
Collecting Depository
Participant or CDP
A depository participant as defined under the Depositories Act, 1996,
registered with SEBI and who is eligible to procure Bids at the Designated
CDP Locations in terms of circular no. CIR/CFD/POLICYCELL/11/2015
dated November 10, 2015 issued by SEBI
Cut-off Price Issue Price, finalised by our Company and the Selling Shareholders in
consultation with the BRLMs
Only Retail Individual Bidders are entitled to Bid at the Cut-off Price. QIBs
and Non-Institutional Bidders are not entitled to Bid at the Cut-off Price
DP/ Depository Participant A depository participant as defined under the Depositories Act
DP ID Depository Participant‘s Identification
Demographic Details Details of the Bidders including the Bidder‟s address, name of the Bidder‟s
father/husband, investor status, occupation and bank account details
Designated CDP Locations Such locations of the CDPs where Bidders can submit the ASBA Forms.
The details of such Designated CDP Locations, along with names and contact
details of the Collecting Depository Participants eligible to accept Bid cum
Application Forms are available on the respective websites of the Stock
Exchanges (www.bseindia.com and www.nseindia.com)
Designated Date The date on which funds are transferred from the Escrow Account and the
amounts blocked by the SCSBs are transferred from the ASBA Accounts, as
the case may be, to the Public Issue Account or the Refund Account, as
appropriate, after filing of the Prospectus with the RoC
Designated Intermediaries Syndicate, sub-syndicate/agents, SCSBs, Registered Brokers, CDPs and
RTAs, who are authorized to collect ASBA Forms from the ASBA Bidders, in
relation to the Issue
Designated RTA Locations Such locations of the RTAs where Bidders can submit ASBA Forms to RTAs.
The details of such Designated RTA Locations, along with names and contact
details of the RTAs eligible to accept Bid cum Application Forms are available
on the respective websites of the Stock Exchanges (www.bseindia.com and
www.nseindia.com)
Designated SCSB Branches Such branches of the SCSBs which shall collect the ASBA Forms, a list of
which is available on the website of SEBI at
http://www.sebi.gov.in/sebiweb/home/list/5/33/0/0/Recognised-Intermediaries
or at such other website as may be prescribed by SEBI from time to time
Designated Stock Exchange BSE
Draft Red Herring Prospectus
or DRHP
The draft red herring prospectus dated February 1, 2016, issued in accordance
with the SEBI Regulations, which did not contain complete particulars of the
price at which the Equity Shares will be Allotted and the size of the Issue
Eligible NRI(s) NRI(s) from jurisdictions outside India where it is not unlawful to make an
offer or invitation under the Issue and in relation to whom the ASBA Form
and this Red Herring Prospectus will constitute an invitation to purchase the
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Term Description
Equity Shares
Escrow Account ‗No-lien‘ and ‗non-interest bearing‘ account opened with the Escrow
Collection Bank(s) and in whose favour Anchor Investors will transfer money
through direct credit/NEFT/RTGS in respect of the Bid Amount when
submitting a Bid
Escrow Collection Bank(s) Banks which are clearing members and registered with SEBI as bankers to an
issue and with whom the Escrow Account will be opened, in this case being
HDFC Bank Limited
First Bidder Bidder whose name shall be mentioned in the Bid cum Application Form or
the Revision Form and in case of joint Bids, whose name shall also appear as
the first holder of the beneficiary account held in joint names
Floor Price The lower end of the Price Band, subject to any revision thereto, in this case
being ` [●] at or above which the Issue Price will be finalised and below which
no Bids will be accepted
Fresh Issue The fresh issue of up to [●] Equity Shares aggregating up to ` 4,300 million by
our Company
General Information
Document/GID
The General Information Document prepared and issued in accordance with
the circular (CIR/CFD/DIL/12/2013) dated October 23, 2013 notified by
SEBI, suitably modified and included in the section entitled ―Issue Procedure‖
on page 454
Issue The public issue of up to [●] Equity Shares of face value of `10 each for cash
at a price of ` [●] each, aggregating up to ` [●] million comprising the Fresh
Issue and the Offer for Sale
Issue Agreement The agreement dated January 27, 2016 entered into between our Company, the
Selling Shareholders and the BRLMs, pursuant to which certain arrangements
are agreed to in relation to the Issue
Issue Price The final price at which the Equity Shares will be Allotted to Bidders other
than Anchor Investors. Equity Shares will be Allotted to Anchor Investors at
the Anchor Investor Issue Price in terms of this Red Herring Prospectus
In relation to Retail Individual Bidders, Issue Price shall be the final price (less
Retail Discount) at which the Equity Shares will be Allotted to Retail
Individual Bidders.
The Issue Price will be decided by our Company in consultation with the
Selling Shareholders and the BRLMs on the Pricing Date
Issue Proceeds The proceeds of the Issue that are available to our Company and the Selling
Shareholders
Maximum RIB Allottees The maximum number of Retail Individual Bidders who can be allotted the
minimum Bid Lot. This is computed by dividing the total number of Equity
Shares available for Allotment to Retail Individual Bidders by the minimum
Bid Lot
Mutual Fund Portion 5% of the QIB Portion (excluding the Anchor Investor Portion), or [●] Equity
Shares which shall be available for allocation to Mutual Funds only
Mutual Funds Mutual funds registered with SEBI under the Securities and Exchange Board
of India (Mutual Funds) Regulations, 1996
Net Proceeds Proceeds of the Fresh Issue less our Company‘s share of the Issue expenses.
For further information about use of the Issue Proceeds and the Issue
expenses, please see the section entitled ―Objects of the Issue‖ on page 97
Non-Institutional Bidders/
NIBs
All Bidders that are not QIBs or Retail Individual Bidders and who have Bid
for the Equity Shares for an amount more than ` 200,000 (but not including
NRIs other than Eligible NRIs)
Non-Institutional Portion The portion of the Issue being not less than 15% of the Issue comprising [●]
Equity Shares which shall be available for allocation on a proportionate basis
to Non-Institutional Bidders, subject to valid Bids being received at or above
the Issue Price
Non-Resident Indian/ Non- An individual resident outside India who is a citizen or is an ‗overseas citizen
5
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Term Description
Resident of India‘ cardholder within the meaning of Section 7A of the Citizenship Act,
1955 and includes a Non Resident Indian, FVCIs, FIIs and FPIs
Offer for Sale The offer for sale of up to 1,136,364 Equity Shares by Dilip Suryavanshi, up
to 1,136,364 Equity Shares by Devendra Jain and up to 7,954,545 Equity
Shares by the Investor Selling Shareholder at the Issue Price aggregating up to
` [●] million in terms of this Red Herring Prospectus
Price Band Price band of a minimum price of ` [●] per Equity Share (Floor Price) and the
maximum price of ` [●] per Equity Share (Cap Price), including any revisions
thereof
The Price Band, the Retail Discount and the minimum Bid Lot size for the
Issue will be decided by our Company and the Selling Shareholders in
consultation with the BRLMs and will be advertised, at least five Working
Days prior to the Bid/Issue Opening Date, in (i) all editions of Business
Standard (a widely circulated English national daily newspaper); and (ii) all
editions of Business Standard (a widely circulated Hindi national daily
newspaper with wide circulation in Madhya Pradesh)
Pricing Date The date on which our Company, in consultation with the Selling Shareholders
and the BRLMs, will finalise the Issue Price
Prospectus The Prospectus to be filed with the RoC after the Pricing Date in accordance
with Section 26 of the Companies Act, 2013, and the provisions of the SEBI
Regulations containing, amongst other things the Issue Price that is determined
at the end of the Book Building Process, the size of the Issue and certain other
information, including any addenda or corrigenda thereto
Public Issue Account ‗No-lien‘ and ‗non-interest bearing‘ bank account opened in accordance with
Section 40 of the Companies Act, 2013 to receive monies from the Escrow
Account and from the ASBA Accounts on the Designated Date
QIB Category/QIB Portion The portion of the Issue (including the Anchor Investor Portion) being not
more than 50% of the Issue comprising [●] Equity Shares which shall be
Allotted to QIBs including Anchor Investors
Qualified Institutional Buyers
or QIBs or QIB Bidders
Qualified institutional buyers as defined under Regulation 2(1)(zd) of the
SEBI Regulations
Red Herring Prospectus or RHP This Red Herring Prospectus dated July 21, 2016 issued in accordance with
Section 32 of the Companies Act, 2013 and the provisions of the SEBI
Regulations, which will not have complete particulars of the price at which the
Equity Shares will be offered and the size of the Issue
The Red Herring Prospectus has been registered with the RoC at least three
working days before the Bid/ Issue Opening Date and will become the
Prospectus upon filing with the RoC after the Pricing Date
Refund Account(s) ‗No-lien‘ and ‗non-interest bearing‘ account opened with the Refund Bank(s),
from which refunds, if any, of the whole or part of the Bid Amount to Anchor
Investors shall be made
Refund Bank(s) HDFC Bank Limited
Registered Brokers Stock brokers registered with the stock exchanges having nationwide
terminals, other than BRLMs and the Syndicate Members, eligible to procure
Bids in terms of Circular No. CIR/CFD/14/2012 dated October 4, 2012 issued
by SEBI
Registrar to the Issue or
Registrar
Link Intime India Private Limited
Registrar and Share Transfer
Agents or RTAs
Registrar and share transfer agents registered with SEBI and eligible to
procure Bids at the Designated RTA Locations in terms of circular no.
CIR/CFD/POLICYCELL/11/2015 dated November 10, 2015 issued by SEBI
Registrar Agreement The agreement dated January 27, 2016 entered into between our Company, the
Selling Shareholders and the Registrar to the Issue in relation to the
responsibilities and obligations of the Registrar to the Issue pertaining to the
Issue
Restated Consolidated Restated consolidated financial statements of assets and liabilities as at, for
6
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Term Description
Financial Statements the years ended, March 31, 2016, 2015, 2014, 2013 and 2012 and statement of
profit and loss and cash flows for the years ended March 31, 2016, 2015, 2014,
2013 and 2012 of our Company which were prepared in accordance with
Indian GAAP and the Companies Act) and restated in accordance with the
SEBI Regulations
Restated Financial Statements Collectively, the Restated Consolidated Financial Statements and the Restated
Unconsolidated Financial Statements
Restated Unconsolidated
Financial Statements
Restated unconsolidated financial statements of assets and liabilities as at, for
the years ended, March 31, 2016, 2015, 2014, 2013 and 2012 and statement of
profit and loss and cash flows for the years ended March 31, 2016, 2015, 2014,
2013 and 2012 of our Company which were prepared in accordance with
Indian GAAP and the Companies Act) and restated in accordance with the
SEBI Regulations
Retail Discount Discount of [●]% (equivalent of ` [●]) to the Issue Price given to Retail
Individual Bidders
The Retail Discount will be decided by our Company and the Selling
Shareholder in consultation with the BRLMs and will be advertised at least
five Working Days prior to the Bid/ Issue Opening Date in (i) all editions of
the English national daily newspaper Business Standard (a widely circulated
English national daily newspaper); and (ii) all editions of the Hindi national
daily newspaper Business Standard (a widely circulated Hindi national daily
newspaper with wide circulation in Madhya Pradesh.)
Retail Individual Bidders/ RIBs Individual Bidders who have Bid for the Equity Shares for an amount not
more than ` 200,000 in any of the bidding options in the Issue (including
HUFs applying through their Karta and Eligible NRIs and does not include
NRIs other than Eligible NRIs)
Retail Portion The portion of the Issue being less than 35% of the Issue comprising [●]
Equity Shares which shall be available for allocation to Retail Individual
Bidder(s) in accordance with the SEBI Regulations
Revision Form Form used by the Bidders to modify the quantity of the Equity Shares or the
Bid Amount in any of their ASBA Forms or any previous Revision Forms.
QIB Bidders and Non-Institutional Bidders are not allowed to withdraw or
lower their Bids (in terms of number of Equity Shares or the Bid Amount) at
any stage. Retail Individual Bidders can revise their Bids during the Bid/Issue
Period and withdraw their Bids until the Bid/Issue Closing Date
Self Certified Syndicate
Bank(s) or SCSB(s)
Banks registered with SEBI, offering services in relation to ASBA, a list of
which is available on the website of SEBI at
http://www.sebi.gov.in/sebiweb/home/list/5/33/0/0/Recognised-Intermediaries
and updated from time to time
Selling Shareholders The Promoter Selling Shareholders and the Investor Selling Shareholder
Share Escrow Agent Escrow agent appointed pursuant to the Share Escrow Agreement, being, Link
Intime India Private Limited
Share Escrow Agreement The agreement dated July 19, 2016 entered into between our Company, the
Selling Shareholders and the Share Escrow Agent in connection with the
transfer of Equity Shares under the Offer for Sale by the Selling Shareholders
and credit of such Equity Shares to the demat accounts of the Allottees
Specified Locations Bidding centres where the Syndicate shall accept ASBA Forms from Bidders
Stock Exchanges BSE Limited and the National Stock Exchange of India Limited
Syndicate Agreement The agreement dated July 19, 2016, entered into between the BRLMs, the
Syndicate Members, our Company, the Selling Shareholders and the Registrar
to the Issue in relation to collection of Bid cum Application Forms by the
Syndicate
Syndicate/ Members of the
Syndicate
The BRLMs and the Syndicate Members
Syndicate Members Intermediaries, registered with SEBI who are permitted to carry out activities
as an underwriter, being, India Infoline Limited and JM Financial Services
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Term Description
Limited
Underwriters The BRLMs and the Syndicate Members
Underwriting Agreement The agreement dated [●] to be entered into between the Underwriters, our
Company and the Selling Shareholders to be entered into on or after the
Pricing Date
Wilful Defaulter A person who is categorised as a wilful defaulter by any bank or financial
institution or consortium thereof, in accordance with guidelines on wilful
defaulters issued by the RBI
Working Day ―Working Day‖, with reference to (a) announcement of Price Band; and (b)
Bid/Issue Period, shall mean all days, excluding Saturdays, Sundays and
public holidays, on which commercial banks in Mumbai are open for business;
and (c) the time period between the Bid/Issue Closing Date and the listing of
the Equity Shares on the Stock Exchanges, shall mean all trading days of
Stock Exchanges, excluding Sundays and bank holidays, as per the SEBI
Circular SEBI/HO/CFD/DIL/CIR/P/2016/26 dated January 21, 2016
Technical/Industry Related Terms /Abbreviations
Term Description
AIBP Accelerated Irrigation Benefits Program
BOT Build, Operate and Transfer
BOT (Annuity) Annuity based BOT projects
BOT (Toll) Toll based BOT projects
CAD Command Area Development
COD Date of commencement of the commercial operation of project
DBFOT Design, Build, Finance, Operate and Transfer
DBFOMT Design, Build, Finance, Operate, Maintain and Transfer
EPC Engineering, Procurement and Construction
GST Goods and Services Tax
Minimum Wages Act The Minimum Wages Act, 1948
MoRTH The Ministry of Road Transport and Highways, Government of India
MPRDC Madhya Pradesh Road Development Corporation Limited
NH National Highway
NH Act National Highways Act, 1956
NHAI National Highways Authority of India
NHDP National Highways Development Project
O&M Operation and Maintenance
SPV Special Purpose Vehicle
Conventional and General Terms or Abbreviations
Term Description
AGM Annual General Meeting
AIF Alternative Investment Fund as defined in and registered with SEBI under the
Securities and Exchange Board of India (Alternative Investment Funds)
Regulations, 2012
AS/Accounting Standards Accounting Standards issued by the Institute of Chartered Accountants of India
Axis Axis Capital Limited
Bn/bn Billion
BSE BSE Limited
CAGR Compounded Annual Growth Rate
Category I Foreign Portfolio
Investors
FPIs who are registered with SEBI as ―Category I foreign portfolio investors‖
under the SEBI FPI Regulations
Category II Foreign Portfolio
Investors
FPIs who are registered with SEBI as ―Category II foreign portfolio investors‖
under the SEBI FPI Regulations
Category III Foreign Portfolio
Investors
FPIs who are registered with SEBI as ―Category III foreign portfolio investors‖
under the SEBI FPI Regulations
CDSL Central Depository Services (India) Limited
8
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Term Description
CENVAT Central Value Added Tax
CESTAT Customs, Excise and Service Tax Appellate Tribunal
CIN Corporate Identity Number
CIT Commissioner of Income Tax
Cess Act Building and Other Construction Workers Welfare Cess Act, 1996
Companies Act Companies Act, 1956 and/or the Companies Act, 2013, as applicable
Companies Act, 1956 Companies Act, 1956, as amended (without reference to the provisions thereof
that have ceased to have effect upon the notification of the Notified Sections)
Companies Act, 2013 The Companies Act, 2013, to the extent in force pursuant to the notification of
the Notified Sections
Construction Workers Act The Building and Other Construction Workers (Regulation of Employment and
Conditions of Service) Act, 1996
CLRA Contract Labour (Regulation and Abolition) Act,1979
C.P.C Civil Procedure Code, 1908
Cr.P.C Criminal Procedure Code, 1973
Depositories NSDL and CDSL
Depositories Act The Depositories Act, 1996
DIPP Department of Industrial Policy and Promotion, Ministry of Commerce and
Industry, Government of India
DIN Director Identification Number
EGM Extraordinary General Meeting
EPS Earnings Per Share
ESI Act Employee State Insurance under the Employees State Insurance Act, 1948
FCNR Foreign Currency Non-Resident
FDI Foreign Direct Investment
FDI Policy Consolidated Foreign Direct Investment Policy notified by DIPP D/o IPP F.
No. 5(1)/2016-FC-1 dated June 7, 2016, effective from June 7, 2016
FEMA Foreign Exchange Management Act, 1999, read with rules and regulations
thereunder
FEMA Regulations Foreign Exchange Management (Transfer or Issue of Security by a Person
Resident Outside India) Regulations, 2000 and amendments thereto
FII(s) Foreign Institutional Investors as defined under the SEBI FPI Regulations
FPI(s) A foreign portfolio investor as defined under the SEBI FPI Regulations
Financial Year/Fiscal/FY The period of 12 months ending March 31 of that particular year
FIPB Foreign Investment Promotion Board
FIR First Information Report
FVCI Foreign venture capital investors as defined and registered under the SEBI
FVCI Regulations
GDP Gross Domestic Product
GIR General Index Register
GoI or Government Government of India
HUF Hindu Undivided Family
ICAI The Institute of Chartered Accountants of India
IFRS International Financial Reporting Standards
IIFL IIFL Holdings Limited
Income Tax Act The Income Tax Act, 1961
India Republic of India
Indian GAAP Generally Accepted Accounting Principles in India
IPC Indian Penal Code, 1860
IPO Initial Public Offering
IRDAI Insurance Regulatory and Development Authority of India
IST Indian Standard Time
IT Information Technology
JM Financial JM Financial Institutional Securities Limited
LIBOR London Interbank Offered Rate
MICR Magnetic Ink Character Recognition
Mn Million
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Term Description
N.A./NA Not Applicable
NAV Net Asset Value
NECS National Electronic Clearing Services
NEFT National Electronic Fund Transfer
NH Fee Rules National Highways Fee (Determination of Rates and Collection) Rules, 2008
NHAI Act National Highways Authority of India Act, 1988
Notified Sections The sections of the Companies Act, 2013 that have been notified by the
Ministry of Corporate Affairs, Government of India
NRE Account Non Resident External Account
NRI An individual resident outside India who is citizen of India or is a person of
Indian origin, and shall have the meaning ascribing to such term in the Foreign
Exchange Management (Deposit) Regulations, 2000
NRO Account Non Resident Ordinary Account
NSDL National Securities Depository Limited
NSE The National Stock Exchange of India Limited
OCB/Overseas Corporate Body A company, partnership, society or other corporate body owned directly or
indirectly to the extent of at least 60% by NRIs including overseas trusts, in
which not less than 60% of beneficial interest is irrevocably held by NRIs
directly or indirectly and which was in existence on October 3, 2003 and
immediately before such date had taken benefits under the general permission
granted to OCBs under FEMA. OCBs are not allowed to invest in the Issue
p.a. Per annum
P/E Ratio Price/Earnings Ratio
PAN Permanent Account Number
PAT Profit After Tax
PNBISL PNB Investment Services Limited
RBI The Reserve Bank of India
RoC Registrar of Companies, Madhya Pradesh situated at 3rd Floor, 'A' Block,
Sanjay Complex, Jayendra Ganj, Gwalior, Madhya Pradesh
RoNW Return on Net Worth
`/Rs./Rupees/INR Indian Rupees
RTGS Real Time Gross Settlement
SCRA Securities Contracts (Regulation) Act, 1956
SCRR Securities Contracts (Regulation) Rules, 1957
SEBI The Securities and Exchange Board of India constituted under the SEBI Act,
1992
SEBI Act Securities and Exchange Board of India Act, 1992
SEBI AIF Regulations Securities and Exchange Board of India (Alternative Investments Funds)
Regulations, 2012
SEBI FII Regulations Securities and Exchange Board of India (Foreign Institutional Investors)
Regulations, 1995
SEBI FPI Regulations Securities and Exchange Board of India (Foreign Portfolio Investors)
Regulations, 2014
SEBI FVCI Regulations Securities and Exchange Board of India (Foreign Venture Capital Investors)
Regulations, 2000
SEBI Listing Regulations Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015
SEBI Regulations Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulations, 2009
SEBI VCF Regulations Securities and Exchange Board of India (Venture Capital Funds) Regulations,
1996
Securities Act United States Securities Act of 1933
SICA Sick Industrial Companies (Special Provisions) Act, 1985
Sq. ft. Square feet
STT Securities Transaction Tax
State Government The government of a state in India
Stock Exchanges The BSE and the NSE
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Term Description
Takeover Regulations Securities and Exchange Board of India (Substantial Acquisition of Shares and
Takeovers) Regulations, 2011
U.K. United Kingdom
U.S./U.S.A/United States United States of America
US GAAP Generally Accepted Accounting Principles in the United States of America
USD/US$ United States Dollars
VAS Value Added Services
VAT Value Added Tax
VCFs Venture Capital Funds as defined in and registered with SEBI under the SEBI
VCF Regulations or the SEBI AIF Regulations, as the case may be
Wages Act The Payment of Wages Act, 1936
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PRESENTATION OF FINANCIAL, INDUSTRY AND MARKET DATA
Certain Conventions
All references to ―India‖ contained in this Red Herring Prospectus are to the Republic of India and all references
to the ―U.S.‖, ―U.S.A‖ or ―United States‖ are to the United States of America.
Unless stated otherwise, all references to page numbers in this Red Herring Prospectus are to the page numbers
of this Red Herring Prospectus.
Financial Data
Unless stated otherwise, the financial information in this Red Herring Prospectus is derived from our Restated
Financial Statements.
In this Red Herring Prospectus, any discrepancies in any table between the total and the sums of the amounts
listed are due to rounding off. All figures in decimals have been rounded off to the second decimal and all
percentage figures have been rounded off to one decimal place.
Our Company‘s financial year commences on April 1 and ends on March 31 of the next year; accordingly, all
references to a particular financial year, unless stated otherwise, are to the 12 month period ended on March 31
of that year.
There are significant differences between Indian GAAP, U.S. GAAP and IFRS. Our Company does not provide
reconciliation of its financial information to IFRS or U.S. GAAP. Our Company has not attempted to explain
those differences or quantify their impact on the financial data included in this Red Herring Prospectus and it is
urged that you consult your own advisors regarding such differences and their impact on our financial data. For
further details, please see the section entitled ―Risk Factors – Significant differences exist between Indian
GAAP and other accounting principles with which investors may be more familiar‖ on page 50. Accordingly,
the degree to which the financial information included in this Red Herring Prospectus will provide meaningful
information is entirely dependent on the reader‘s level of familiarity with Indian accounting policies and
practices, the Companies Act, the Indian GAAP and the SEBI Regulations. Any reliance by persons not familiar
with Indian accounting policies and practices on the financial disclosures presented in this Red Herring
Prospectus should accordingly be limited.
Unless the context otherwise indicates, any percentage amounts, as set forth in the sections entitled ―Risk
Factors‖, ―Our Business‖, ―Management‘s Discussion and Analysis of Financial Conditional and Results of
Operations‖ on pages 15, 143 and 384, respectively, and elsewhere in this Red Herring Prospectus have been
calculated on the basis of our Restated Financial Statements.
Currency and Units of Presentation
All references to:
―Rupees‖ or ―`‖ or ―INR‖ or ―Rs.‖ are to Indian Rupee, the official currency of the Republic of India;
―USD‖ or ―US$‖ are to United States Dollar, the official currency of the United States; and
Our Company has presented certain numerical information in this Red Herring Prospectus in ―million‖ units.
One million represents 1,000,000 and one billion represents 1,000,000,000.
Exchange Rates
This Red Herring Prospectus contains conversion of certain other currency amounts into Indian Rupees that
have been presented solely to comply with the SEBI Regulations. These conversions should not be construed as
a representation that these currency amounts could have been, or can be converted into Indian Rupees, at any
particular rate.
The following table sets forth, for the periods indicated, information with respect to the exchange rate between
the Rupee and the US$ (in Rupees per US$):
12
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(Amount in `, unless otherwise specified)
Currency As on March
31, 2011
As on March
31, 2012
As on March
31, 2013
As on March
31, 2014
As on March
31, 2015
As on March
31, 2016
1 US$ 44.65 51.16(1)
54.39(2)
60.10(3)
62.59 66.33 Source: RBI Reference Rate (1) Exchange rate as on March 30, 2012, as RBI Reference Rate is not available for March 31, 2012 being a Saturday. (2) Exchange rate as on March 28, 2013, as RBI Reference Rate is not available for March 31, 2013, March 30, 2013 and March 29,
2013 being a Sunday, Saturday and a public holiday, respectively. (3) Exchange rate as on March 28, 2014, as RBI Reference Rate is not available for March 31, 2014, March 30, 2014 and March 29,
2014 being a public holiday, a Sunday and a Saturday, respectively.
Industry and Market Data
Unless stated otherwise, industry and market data used in this Red Herring Prospectus has been obtained or
derived from publicly available information as well as industry publications, ‗Roads and Highway, Annual
Review October 2015‘ issued by CRISIL Research, a division of CRISIL Limited and other sources.
Industry publications generally state that the information contained in such publications has been obtained from
publicly available documents from various sources believed to be reliable but their accuracy and completeness
are not guaranteed and their reliability cannot be assured. Accordingly, no investment decisions should be based
on such information. Although we believe the industry and market data used in this Red Herring Prospectus is
reliable, it has not been independently verified by us or the BRLMs or any of their affiliates or advisors. The
data used in these sources may have been re-classified by us for the purposes of presentation. Data from these
sources may also not be comparable.
The extent to which the market and industry data used in this Red Herring Prospectus is meaningful depends on
the reader‘s familiarity with and understanding of the methodologies used in compiling such data. There are no
standard data gathering methodologies in the industry in which business of our Company is conducted, and
methodologies and assumptions may vary widely among different industry sources.
In accordance with the SEBI Regulations, the section entitled ―Basis for Issue Price‖ on page 105 includes
information relating to our peer group companies. Such information has been derived from publicly available
sources, and neither we, nor the BRLMs have independently verified such information.
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FORWARD-LOOKING STATEMENTS
This Red Herring Prospectus contains certain ―forward-looking statements‖. These forward-looking statements
generally can be identified by words or phrases such as ―aim‖, ―anticipate‖, ―believe‖, ―expect‖, ―estimate‖,
―intend‖, ―objective‖, ―plan‖, ―project‖, ―will‖, ―will continue‖, ―will pursue‖ or other words or phrases of
similar import. Similarly, statements that describe our strategies, objectives, plans, prospects or goals are also
forward-looking statements. All forward-looking statements are subject to risks, uncertainties and assumptions
about us that could cause actual results to differ materially from those contemplated by the relevant forward-
looking statement.
Actual results may differ materially from those suggested by the forward-looking statements due to risks or
uncertainties associated with the expectations with respect to, but not limited to, regulatory changes pertaining
to the industries in India in which our Company operates and our ability to respond to them, our ability to
successfully implement our strategy, our growth and expansion, technological changes, our exposure to market
risks, general economic and political conditions in India which have an impact on its business activities or
investments, the monetary and fiscal policies of India, inflation, deflation, unanticipated turbulence in interest
rates, foreign exchange rates, equity prices or other rates or prices, the performance of the financial markets in
India and globally, changes in domestic laws, regulations and taxes and changes in competition in the industries
in which we operate. Important factors that could cause actual results to differ materially from our Company‘s
expectations include, but are not limited to, the following:
General economic and business conditions and level of investment and activity in the infrastructure development and construction sector;
Inability to identify or acquire new projects or win bids for new projects;
Changes in Government policies and budgetary allocations for investments in road infrastructure;
Delays, modifications or cancellations of projects included in our order book and our future projects;
Lower than expected returns on our investment in BOT projects; and
Ability to obtain financing in order to meet our capital expenditure requirements and pursue our growth strategy.
For further discussion of factors that could cause the actual results to differ from the expectations, please see the
sections entitled ―Risk Factors‖, ―Our Business‖ and ―Management‘s Discussion and Analysis of Financial
Condition and Results of Operations‖ on pages 15, 143 and 384, respectively. By their nature, certain market
risk disclosures are only estimates and could be materially different from what actually occurs in the future. As a
result, actual gains or losses could materially differ from those that have been estimated.
We cannot assure Bidders that the expectations reflected in these forward-looking statements will prove to be
correct. Given these uncertainties, Bidders are cautioned not to place undue reliance on such forward-looking
statements and not to regard such statements as a guarantee of future performance.
Forward-looking statements reflect the current views of our Company as of the date of this Red Herring
Prospectus and are not a guarantee of future performance. These statements are based on the management‘s
beliefs and assumptions, which in turn are based on currently available information. Although we believe the
assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions
could prove to be inaccurate, and the forward-looking statements based on these assumptions could be incorrect.
Neither our Company, our Directors, the Selling Shareholders, the BRLMs nor any of their respective affiliates
have any obligation to update or otherwise revise any statements reflecting circumstances arising after the date
hereof or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to
fruition. In accordance with SEBI requirements, our Company and BRLMs will ensure that the Bidders in India
are informed of material developments until the time of the grant of listing and trading permission by the Stock
Exchanges. Each of the Selling Shareholders will severally ensure that Bidders are informed of material
developments in relation to statements and undertakings made by him/it, in this Red Herring Prospectus until the
time of the grant of listing and trading permission by the Stock Exchanges.
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SECTION II: RISK FACTORS
An investment in the Equity Shares involves a high degree of risk. Investors should carefully consider all the
information in this Red Herring Prospectus, including the risks and uncertainties described below, before
making an investment in the Equity Shares. The risks and uncertainties described in this section are not the only
risks that we currently face. Additional risks and uncertainties not currently known to us or that are currently
believed to be immaterial may also have an adverse impact on our business, results of operations and financial
condition. If any of the following risks, or other risks that are not currently known or are currently deemed
immaterial, actually occur, our business, results of operations and financial condition could be materially and
adversely affected and the price of the Equity Shares could decline, causing the investors to lose part or all of
the value of their investment in the Equity Shares. The financial and other related implications of the risk
factors, wherever quantifiable, have been disclosed in the risk factors mentioned below. However, there are
certain risk factors where the financial impact is not quantifiable and, therefore, cannot be disclosed in such
risk factors.
To obtain a complete understanding, prospective investors should read this section in conjunction with the
sections entitled ―Our Business‖ and ―Management‘s Discussion and Analysis of Financial Condition and
Results of Operations‖ on pages 143 and 384, respectively, as well as the other financial and statistical
information contained in this Red Herring Prospectus. The financial information in this section is derived from
our Restated Financial Statements for the five Financial Years ended March 31, 2016.
Internal Risk Factors
Risks Relating to our Business
1. There are certain criminal proceedings pending against our Company, our Promoters and certain Directors and employees.
There are certain criminal proceedings pending against our Company, our Promoters and certain
Directors which are pending at different levels of adjudication before various courts. The amounts
claimed in these proceedings have been disclosed to the extent ascertainable and quantifiable, and
include amounts jointly and severally from our Company and other parties. There are four criminal
cases pending against our Company, Promoters and Directors. Also, there are various criminal cases
pending against our employees in relation to road accidents, under various sections of the IPC and any
adverse outcome in these cases could have a material adverse impact on the position of our Company.
These proceedings may have a significant impact on our corporate image, reputation, client
relationships and chances of undertaking new projects, divert the attention of our management and
Promoters and waste our corporate resources. If we are unable to neutralize the impact of these
proceedings effectively or efficiently, we may suffer damage to our reputation and relationships with
our clients, lenders, suppliers and communities and experience significant project delays or cost
overruns. Our business, prospects, financial condition and results of operation could be materially and
adversely affected as a result. For details in relation to certain material litigation, please see the section
entitled ―Outstanding Litigation and Material Developments‖ on page 409.
2. There are outstanding legal proceedings against our Company, certain of its Directors, its Promoters, Subsidiaries, its Joint Ventures and Group Companies, which may adversely affect our
business, financial condition and results of operations.
There are outstanding legal proceedings against us that are incidental to our business and operations,
including certain criminal proceedings against our Company, certain of its Directors, its Promoters and
its Subsidiaries, Joint Ventures and Group Companies. These proceedings are pending at different
levels of adjudication before various courts, tribunals, enquiry officers and appellate tribunals. Such
proceedings could divert management time and attention, and consume financial resources in their
defense. Further, an adverse judgment in some of these proceedings could have an adverse impact on
our business, financial condition and results of operations. Additionally, some properties on which we
are developing projects are subject to litigation.
A summary of the outstanding legal proceedings against our Company, its Directors, its Promoters, and
its Subsidiaries, Joint Ventures and Group Companies as disclosed in this Red Herring Prospectus
along with the amount involved, to the extent quantifiable, have been set out below (excluding certain
cases against our Company for traffic accidents caused by our drivers that occurred during the ordinary
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course of our business):
Litigation against our Company
Sr. No. Nature of Case Number of Outstanding Cases Amount involved(1)
(in ` million) 1. Criminal 3(2) Non-quantifiable
2. Civil 161 635.99
3. Actions taken by statutory and regulatory authorities
66 796.58
4. Taxation matters 3 48.92(3) (1) Approximate amounts involved, may vary due to any penalty or interest. (2) Excluding 139 criminal cases filed against the employees of our Company. (3) This amount does not include amounts deposited with the Income Tax Settlement Commission.
Litigation against the Directors
Sr. No. Nature of Case Number of Outstanding Cases Amount involved(1)
(in ` million) Dilip Suryavanshi(2)
1. Criminal 2 Non-quantifiable
2. Civil 3 1.68
3. Actions taken by statutory and regulatory authorities
3 10.39
4. Taxation matters 1 -(3),(4)
Seema Suryavanshi(2)
1. Criminal 2 Non-quantifiable
2. Taxation matters 1 -(3),(4)
Devendra Jain(2)
1. Criminal 2 Non-quantifiable
2. Civil 2 0.67
3. Actions taken by statutory and regulatory authorities
2 45.40
4. Taxation matters 1 23.52
Naval Jawaharlal Totla
1. Taxation matters 1 6.09(5)
Amogh Kumar Gupta
1. Criminal 1 Non-quantifiable (1) Approximate amounts involved, may vary due to any penalty or interest (2) Also the Promoters of our Company. (3) ` 10,000 per assessment year from 2007-2008 to 2013-2014. (4) This amount does not include amounts deposited with the Income Tax Settlement Commission. (5) Additions in income made in the assessment order.
Litigation against the Subsidiaries and Joint Ventures
Sr. No. Nature of Case Number of Outstanding Cases Amount involved(1)
(in ` million) 1. Civil 7 0.06
2. Arbitration 3 469.61 (1) Approximate amounts involved, may vary due to any penalty or interest
Litigation against the Group Companies
Sr. No. Nature of Case Number of Outstanding Cases Amount involved(1)
(in ` million) 1. Civil 1 0.50
2. Actions taken by statutory and regulatory authorities
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3. Taxation matters 1 6.07 (1) Approximate amounts involved, may vary due to any penalty or interest
We cannot assure you that any of these proceedings will be decided in favour of us, our Promoters, our
Directors, our Subsidiaries, our Joint Ventures or our Group Companies or that no further liability will
arise out of these proceedings. Further, the amounts claimed in these proceedings have been disclosed
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to the extent ascertainable, excluding contingent liabilities and include amounts claimed. Should any
new developments arise, such as a change in Indian law or rulings by appellate courts or tribunals,
additional provisions may need to be made by us, our Promoters, our Directors, our Subsidiaries or our
Joint Ventures in our respective financial statements, which may adversely affect our business,
financial condition and reputation. For further details of outstanding litigation against us, our Directors,
our Promoters, our Subsidiaries, our Joint Ventures or our Group Companies, please see the section
entitled ―Outstanding Litigation and Material Developments‖ on page 409.
3. Our Company and certain of our Promoters and Directors have been subject to search and seizure operations conducted by the Indian income tax authorities. Any adverse determination by the tax
authorities in this matter could increase our tax liability and subject us to monetary penalties.
Search and seizure proceedings were initiated by the Income Tax Department on June 20, 2012 against
our Company and certain of our Subsidiaries, Promoters, Directors, Promoter Group entities and Group
Companies (the ―Income Tax Search and Seizure Proceedings‖). Pursuant to the Income Tax Search
and Seizure Proceedings, the Deputy Commissioner of Income Tax, Central, Bhopal issued notices
under Section 153A of the Income Tax Act, 1961 for assessment years 2007-08 to 2012-13 on
December 27, 2012, and a notice under Section 143(2) of the Income Tax Act, 1961, for assessment
year 2013-14 on September 10, 2014 against our Company and certain of our Subsidiaries, Promoters,
Directors, Promoter Group entities and Group Companies. Our Company has filed a response to the
assessing officer on December 17, 2013, stating that return of income filed under Section 139(1) of the
Income Tax Act, 1961, for the assessment years 2007-08, 2009-10, 2010-11, 2011-12, and 2012-13,
shall be considered as return of income filed under section 153A of the Income Tax Act, 1961. Our
Company and two of our Promoters, Dilip Suryavanshi and Seema Suryavanshi have filed settlement
applications under Section 245C (1) of the Income Tax Act, 1961 along with fresh computation of
incomes before the Income Tax Settlement Commission, Additional Bench, Mumbai (the ―Settlement
Commission‖) on March 12, 2015. Our Company, Dilip Suryavanshi and Seema Suryavanshi have
deposited amounts aggregating ` 71.00 million, ` 107.20 million and ` 8.80 million, respectively, towards the proposed settlement. These settlement applications are currently pending before the
Principal Bench, Income Tax Settlement Commission, New Delhi. The Principal Commissioner of
Income Tax (Central) Bhopal has filed a writ petition against Seema Suryavanshi, Dilip Suryavanshi
and our Company challenging the afore said order dated May 13, 2015. Notices have been received in
this regard. Further by an order dated June 23, 2016 the Settlement Commission has transferred the
matter from Principal Bench, Income Tax Settlement Commission, New Delhi to the Additional
Bench-I, Income Tax Settlement Commission, New Delhi. The aforesaid writ petition may have a
material adverse effect on the position of our Company, which we are unable to ascertain as of date of
this Red Herring Prospectus. For details, please see section entitled ―Outstanding Litigation and
Material Developments‖ on pages 418. There can be no assurance that the Settlement Commission will
accept the settlement terms proposed by our Company, Dilip Suryavanshi and Seema Suryavanshi, and
that there will be no additional tax liability imposed on our Company, Dilip Suryavanshi or Seema
Suryavanshi. Further, there can be no assurance that any settlement order passed by the Settlement
Commission will not be challenged by the Income Tax department. Any adverse determination in such
proceedings may have a material adverse effect on our financial condition, cash flows, and results of
operations.
4. Our contingent liabilities that have not been provided for could adversely affect our business, cash flows, financial condition and results of operations.
We usually need to provide performance guarantees when we undertake construction projects, which
are often demanded by our clients to protect them against potential defaults by us. We are also often
required to have our lenders issue letters of credit in favour of our suppliers for purchases of equipment
and raw materials. We thus may have substantial contingent liabilities from time to time depending on
the projects we undertake and the amount of our purchases. As of March 31, 2016, the following
contingent liabilities, on an unconsolidated and on a consolidated basis, were not provided for in our
Restated Financial Statements:
(` in million) As of March 31, 2016
(on a consolidated basis)
As of March 31, 2016
(on an unconsolidated
basis)
Income Tax matters Nil Nil
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As of March 31, 2016
(on a consolidated basis)
As of March 31, 2016
(on an unconsolidated
basis)
Sales Tax/VAT/Other Indirect Taxes matters (Appeal
filed for the year 2008-09)
15.66 15.66
Corporate guarantee given by our Company to banks
for facilities provided to subsidiary companies.
3,985.04 3,985.04
Bank guarantees issued by bankers in favor of third
parties.
22,081.30 22,081.30
Claims against our Company not acknowledged as
debts
365.27 365.27
Liability arising on account of application made to
the Income Tax Settlement Commission
Amount not
ascertainable
Amount not
ascertainable Note: Future cash outflows, if any, in respect of the above are dependent upon the outcome of future events, etc. Our Company
does not expect any reimbursements in respect of above contingent liabilities.
The aggregate contingent liabilities (to the extent ascertainable) were ` 26,447.27 million and ` 26,447.27 million as compared to a net worth of ` 10,012.73 million and ` 10,925.11 million on a restated consolidated and unconsolidated basis, respectively, in each case as of March 31, 2016. The
contingent liabilities as on March 31, 2016 were 264.14% of consolidated net worth and 242.08% of
unconsolidated net worth.
If a project is not completed or the required payments are not made on time, the relevant performance
guarantees or letters of credit may be enforced. If any of these contingent liabilities materialize, we
may have to fulfil our payment obligations, which may have an adverse impact on our cash flows,
financial conditions and results of operations. For further details, see the section entitled ―Financial
Statements‖ on page 228.
5. Projects included in our order book and our future projects may be delayed, modified or cancelled for reasons beyond our control which may materially and adversely affect our business, prospects,
reputation, profitability, financial condition and results of operation.
As of March 31, 2016, our order book was ` 107,787.31 million. Our order book sets forth our expected revenues from uncompleted portions of the construction contracts received. However, project
delays, modifications in the scope or cancellations may occur from time to time due to either a client‘s
or our default, incidents of force majeure or legal impediments. For example, in some of our projects,
we or our clients are obliged to take certain actions, such as acquiring land, securing right of way,
clearing forests, securing required licenses, authorizations or permits, making advance payments or
opening of letters of credit or moving existing utilities, which may be delayed due to our client‘s non-
performance, our own breaches or force majeure factors. In an EPC project, we may incur significant
additional costs due to project delays and our counterparties may seek liquidated damages due to our
failure to complete the required milestones or even terminate the construction contract totally or refuse
to grant us any extension. The schedule of completion may need to be reset and we may not be able to
recognize revenue if the required percentage of completion is not achieved in the specified timeframe.
In a BOT project, such delays may result in our payment of damages to the other parties, the client‘s
invocation of our performance security and consequential delays in our receipt of annuities and/or
collection of tolls in our BOT projects.
We may not have the full protection in our construction contracts or concession agreements against
such delays or associated liabilities and/or additional costs. Further, we have escalation clauses in some
of our contracts, which, may be interpreted restrictively by our counterparties, who may dispute our
claims for additional costs. As a result, our future earnings may be different from the amount in the
order book. Our contracts may be amended, delayed or cancelled before work commences or during the
course of construction. Due to unexpected changes in a projects scope and schedule, we cannot predict
with certainty when or if expected revenues as reflected in the order book will be achieved. In addition,
even where a project proceeds as scheduled, it is possible that contracting parties may default and fail
to pay amounts owed or receivables due. If any or all of these risks materialize, our business, prospects,
reputation, profitability, financial condition and results of operation may be materially and adversely
affected.
6. If we are not successful in managing our growth, our business may be disrupted and our profitability may be reduced.
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We have experienced high growth in recent years and expect our businesses to continue to grow
significantly. We achieved a CAGR of 38.18% of revenue growth on a consolidated basis for the five-
year period ended March 31, 2016. Our future growth is subject to risks arising from a rapid increase in
order volume, and inability to retain and recruit skilled staff. Although we plan to continue to expand
our scale of operations through organic growth or investments in other entities, we may not grow at a
rate comparable to our growth rate in the past, either in terms of income or profit.
Our future growth may place significant demands on our management