R.P.P. Infra Projects - IPO Note (Keynote Capitals)

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note of the IPO of R.P.P. Infra Projects Ltd.

Issue Highlights

Price Band                                           : Rs 68-75 per share                                         

Minimum Bid Lot Size                         : 80 Equity Share

IPO open during                                  : November 18-22, 2010

Book Running Lead Manager               : VC Corporate Advisors

To list on                                             : NSE & BSE

IPO Grading                                         : 2 / 5 (Fitch)

PE                                                        : 12.97x (based on base price)*

                                                            : 14.31x (based on cap price)*

Market Cap post-listing                        : Rs169.5Cr or $37.5mn (based on the cap price)

Market Cap of Free Float                      : Rs48.8Cr or $10.8mn (based on the cap price)

* based on FY10 EPS.

IPO of 6.5mn equity shares of Rs10 each, aggregating to Rs48.75Cr or $10.8mn (at the cap price) consisting of a fresh issue of 6.1mn shares aggregating to Rs45.75Cr (at the cap price) and an offer for sale of 0.4mn shares aggregating to Rs3Cr.

Executive Summery

•       RPP Infra Projects Ltd. is primarily engaged in the business of infrastructure development such as Highways, Roads and Bridges. It diversified its civil works expertise into SEZ Development, Water Management Projects, Irrigation and Power Projects.

•       Infrastructure related construction activity is an integral to the infrastructure and industrial development of India and involves construction of urban infrastructure, townships, highways, bridges, roads, rail network, ports, airports and power system.

•The Eleventh Five Year Plan has set an ambitious target of increasing total investment in infrastructure from around 5% of GDP in the base year of the Plan 2006-07 to 9% by the terminal year 2011-2012.

•       RPP Infra own the latest construction equipments, comprising of crushers, hydraulic cranes, excavators, loaders, dozers, paver finishers, jack hammers, air compressors & transportation equipments such as trucks, tractors, trailers, jeeps, etc. The ownership ensures continuous availability of equipments, resulting in advantages like lower cost and rapid mobilization.

•       RPP Infra’s total order book position stands at Rs612.9Cr as of 30 June 2010.