Dilip Buildcon

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Dilip Buildcon gets SEBI's nod for IPO, to raise Rs 430 crores

The quite anticipated endorsement from SEBI for raising assets through an Initial Public Offering (IPO) has sought driving EPC company Dilip Buildcon. Through this IPO, the organization is required to raise upto Rs 430 crores.

Draft Red Herring Prospectus (DRHP) was filed by Dilip Buildcon with SEBI on February 1, 2016, and the last endorsed it a month later, on March 10, 2016.

The proceedings that Dilip Buildcon would receive from the sale of freshly issued 11.36 lakh shares, will be utilised to repay and pre-pay some part of the term loans and achieve the corporate aim of Dilip Buildcon. Dilip Suryavanshi and Devendra Jain along with the private equity fund, BanyanTree Growth Capital, hold the right over these shares as they are the promoters of the company. These funds will also be used to meet the working capital requirements of Dilip Buildcon, in time.

One of the promoters of Dilip Buildcon, Dilip Suryavanshi said that the company was planning to raise funds for a very long time and the day SEBI gave a green signal to their proposed draft, they couldn’t be happier. The company is looking forward to utilising the proceedings of this IPO and meet its corporate requirements, he added.

Dilip Buildcon is considered one of the best-in-class private sector Engineering, Procurement and Construction (EPC) contractors of India, whose function areas are primarily focused on road construction.

Axis Capital Ltd, IIFL Holdings, JM Financial Institutional Securities and PNB Investment Services will be the book running lead administrators to this Initial Public Offering.

The shares are likewise accepted to be recorded on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) also.

This is the second time that organization attempted to hit the capital markets. Dilip Buildcon recorded draft papers with the controller in March a year ago, so as to raise Rs 650 crores through an IPO. Subsequent to getting endorsements from SEBI in June a year ago, the EPC master pulled back the draft papers in January and documented crisp papers in February, for some undisclosed reasons.

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Dilip Suryavanshi got more than his expectations

A Nation can't be called created in the event that it does not have the fundamental facilities that change from jolt to street extension, land advancement to water facilities being accessible to all. The late Union Budget has focused towards every that segment which can make a typical man's life less demanding and India a created Nation.

The Finance Minister Arun Jaitley allocated Rs 97,000 crores for the development and expansion of highways and roads from the length and breadth of India. The EPC expert, Dilip Suryavanshi of Dilip Buildcon, believes that this initiative will fetch numerous benefits for not only the Engineering Procurement and Construction leaders like theirs but also give a jump to the development of infrastructures. Real estate sector is quick to seize such opportunities, believes a number of industry experts, which is a fair deal for the realty as well.

The Finance Minister informed that the National Highways Authority of India will raise Rs 15,000 crore through finance projects and bonds as actual budget allocation is Rs 55,000 crore and the Union Government has also earmarked Rs 19,000 crore to be spent on rural roads programme.

Dilip Suryavanshi agrees that he was expecting a hike of Rs 20,000 crore in roads and highway sector’s allocation just like the Road Minister, Nitin Gadkari, which was Rs 45,000 crores last year. But to their surprise along with other industry experts, the Union Government was lenient enough, well, more than just lenient, to set aside Rs 97,000 crores  for the industry.

When you get more than your desires, you believe that you couldn't have requested progressively and that is the thing that happened with Dilip Suryavanshi as he got Rs 20,000 crores more than his desires of Rs 65,000 crores. It makes you trust that anything can happen, so simply continue trusting as the world itself is taking a shot at various standards of conceivable outcomes and individuals living with their hopes held high.

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18 highway projects get nod raising EPC sector’s hopes

With eighteen highway projects worth Rs 17,000 crore getting nod from the government, the Engineering Procurement Construction industry is looking forward to a major boost, says Dilip Suryavanshi, Managing Director of Dilip Buildcon Limited, a leading EPC firm of India.

Out of the total eighteen projects, eight will be awarded on engineering procurement and construction (EPC) mode where 100% funding will be given by the government, nine will be on the new hybrid annuity model where the government will provide 40% of the construction cost and the developer will invest the remaining 60% out of eighteen.

Highways secretary Sanjay Mitra said that the standing committee on finance has cleared 18 projects worth approximately Rs 16,614 crore. These are in Rajasthan, Gujarat, Maharashtra, Orissa, Kerala, Uttar Pradesh, Andhra Pradesh and Chhattisgarh. Eighteen projects for building about 1,000 kms of highways, including nine on the recently approved hybrid pension sort will be awarded by March 2017. Last year projects worth up to Rs 1,000 crore have been cleared by the highways ministry when being empowered by the cabinet.

Four laning of the 67-km Dhule to Aurangabad section in Maharashtra is on the  BOT (build-operate-transfer or toll) mode, where the developers puts the entire project cost and recovers his investment by collecting toll over the concession period. According to Dilip Suryavanshi, the aforementioned section in Maharashtra is going to be highly beneficial for users as well as developers.

A senior ministry official said that land acquisition and environment clearance for these projects would be completed by February.

Awarding 10,000 km of highways before the end of 2015-16 is a target set by the ministry. The construction target has been set at 30 km per day.

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Dilip Suryavanshi praises government decision to award 10,000 km of National Highway in this FY

The Ministry of road, transport and highways has approved 13 national highways projects worth Rs 10,300 crore. This decision is praised by Mr. Dilip Suryavanshi who is the man behind Dilip Buildcon. Dilip Buildcon Limited (DBL) is one of the leading private sector road-focused Engineering Procurement Construction(EPC) contractors in the country . DBL is also the fastest growing infrastructure development company of India with about 78.44% continuous year-on-year growth for the last four years. We are developing infrastructure across the country in many diverse areas such as roads & bridges, water sanitation & sewage, irrigation, industrial, commercial & residential buildings.The total length of the roads is 670 km and will be executed on EPC (Engineering, Procurement Construction), BOT (Toll) and hybrid annuity model. The projects would be spread across Maharashtra, Rajasthan, Chattisgarh, Andhra Pradesh, Uttar Pradesh, Tamil Nadu and Madhya Pradesh.

The government is planning to award these 13 national highways projects by March this year. The project was approved by the Expenditure Finance Committee (EFC) meeting which was held under the chairmanship of Secretary Road, Transport and Highways, Sanjay Mitra.

Mitra said: “We had a meeting today and we have approved 13 National Highway projects having total project cost of Rs 10,300 crore. Out of the total 13 projects, three will be implemented on BOT(Toll) and Hybrid annuity each and the remaining seven projects will be on EPC mode.”

He added that the ministry is planning to award these projects by March this year and  will take around two and a half years for completion.

In a bid to fast-track highways projects, the government last year empowered Road Transport and Highways Ministry to approve projects with civil construction cost up to Rs 1,000 crore. This was done by segregating civil construction cost from capital cost of projects.

Earlier, the ministry has approved 18 national highway projects worth Rs 17,000 crore. The total length of the road is 982 km and will be executed on EPC (Engineering, Procurement Construction), BOT (Toll) and Hybrid annuity model. The project would be spread across Gujarat, Rajasthan, Maharashtra, Kerala, Punjab, Orissa, Uttar Pradesh etc.

The government is planning to award 10,000 km of National Highway during this fiscal year. Till January, it has awarded contracts for 7,000 km of roads.

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Dilip Buildcon Limited IPO

The 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”). The Company was converted into a public limited company and consequently, the name of the Company was changed to Dilip Buildcon Limitedand a fresh certificate of incorporation was issued by the RoC on August 26, 2010.

Company profile:

The Company is leading private sector road-focused EPC contractors in India. During the five fiscals ended March 31, 2014 and the six months ended September 30, 2014, the company has completed the construction of 47 road projects in the Indian states of Madhya Pradesh, Gujarat, Himachal Pradesh and Maharashtra, with an aggregate length of approximately 5,367.83 lane kms, achieving a 78.44% continuous year-on-year revenue growth for the four Financial Years ended March 31, 2014. In addition to the states the company has completed projects the company has expanded presence to six more states, Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Uttar Pradesh and Rajasthan, with ongoing projects. The achievements in the last five fiscals and six months ended September 30, 2014 are attributable to a combination of factors, including our ability to successfully and timely execute EPC projects, focus on geographically clustering, projects for efficiency and profitability, substantial investment in and efficient use of the company construction equipment bank and in-house production of structural parts.

Company Promoters:

Dilip Suryavanshi

Seema Suryavanshi

Devendra Jain

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A Fleet of fabulous Machinery at #DilipBuildcon

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Dilip Buildcon Machinery At A Glance

Dilip Buildcon Ltd. has become the fastest growing infrastructure development company of the country. It is currently executing plans over Rs. 6000 Crore and is the largest private sector road-focused Engineering Procurement Construction player in the country. It has had a 100% growth year-on-year for the last 10 years. 

The company deploys cutting-edge equipment to build roads and bridges, water sanitation and sewage, power and telecom transmission towers, transmission lines, irrigation, industrial, commercial and residential buildings. The company does not believe in subcontracting. All its projects are executed and completed before schedule with the help of their equipment bank.

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A dump truck (or, UK, dumper/tipper truck) is a truck used for transporting loose material (such as sand, gravel, or dirt) for construction. A typical dump truck is equipped with an open-box bed, which is hinged at the rear and equipped with hydraulic pistons to lift the front, allowing the material in the bed to be deposited ("dumped") on the ground behind the truck at the site of delivery. In the UK, Australia and India the term applies to off-road construction plant only, and the road vehicle is known as a tipper, tipper lorry 

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RMC concrete is concrete that is manufactured in a factory or batching plant, according to a set recipe, and then delivered to a work site by truck mounted in–transit mixers. This results in a precise mixture, allowing specialty concrete mixtures to be developed and implemented on construction sites. The first ready-mix factory was built in the 1930s, but the industry did not begin to expand significantly until the 1960s, and it has continued to grow since then.

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High performance and unmatched service of machines have played a major role in the phenomenal growth of Dilip Buildcon Ltd. (DBL), in India. Within ten years the company’s revenue has increased, on average, 100% annually making it one of the fastest growing construction companies in the world.

Bhopal based DBL, with accreditation from the IRQAO and ASCB(E), UK, is currently the largest private sector road-focused Engineering Procurement Construction Company in India, executing projects over Rs.6000 crore.

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A crusher is a machine designed to reduce large rocks into smaller rocks, gravel, or rock dust. Crushers may be used to reduce the size, or change the form, of waste materials so they can be more easily disposed of or recycled, or to reduce the size of a solid mix of raw materials (as in rock ore), so that pieces of different composition can be differentiated. Crushing is the process of transferring a force amplified by mechanical advantage through a material made of molecules that bond together more strongly, and resist deformation more, than those in the material being crushed do.

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Combination of EPC and LPVR payment model supported by Dilip Suryavanshi

It appears as that there is a great deal more to the installment module of highway foundation in India than what meets the eye. Things being what they are the as of late embraced Hybrid Annuity Model (HAM) has a striking drawback, which was neglected some time recently. On the off chance that industry specialists are to be trusted, then HAM may prompt a wasteful venture level designation of activity hazard and would wind up making awful advances for loan specialists in light of off base toll projections. Industrialists like Dilip Suryavanshi of Dilip Buildcon prescribe receiving the Least Present Value Return (LPVR) model for it ends up being a more adaptable and dependable module.

In fact, HAM is essentially a combination of EPC and BOT models yet it fails to solve its purpose. HAM involves 40% of EPC, where NHAI pays to private players to lay roads, and 60% of BOT, where a private player finances the projects and collects revenue in terms of toll. The player builds, operates and maintains the project before transferring it to the government. This mechanism hints towards an inefficient project-level allocation of traffic risk, says Dilip Suryavanshi. Also, BOT would lead to bad loans for lenders owing to the inaccurate toll projections.

Lowest Present Value Return (LPVR), having proved its mettle in other parts of the world, most notably on Route 68 Santiago-Valparaiso highway concession in Chile in the year 1998, seems to offer a long term solution to the payment trouble.

“Under LPVR, the player who is willing to accept the lowest present value of returns is awarded the project. Of course the player is evaluated on the technical and other financial parameters as well.”, says Dilip Suryavanshi.

The venture is conceded with the desire that once the cited LPVR is achieved, the concessionaire term arrives at an end and the undertaking resource gets exchanged back to the legislature.

Besides, a blend of EPC and LPVR like the HAM model can exchange the activity hazard far from NHAI while diminishing the value and obligation trouble for the private players.

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A fleet of world class brand machines owned by Dilip Buildcon

The quickest developing infrastructure organization of the nation – Dilip Buildcon – is presently executing arranges over Rs. 6000 Crore. DBL has turned into the biggest private area road centered Engineering Procurement Construction firm of the nation. DBL has seen a 100% development year-on-year throughout the previous 10 years.

The company deploys cutting-edge equipment to build roads and bridges, water sanitation and sewage, power and telecom transmission towers, transmission lines, irrigation, industrial, commercial and residential buildings. The company does not believe in subcontracting. All its projects are executed and completed before schedule with the help of their equipment bank.

Devendra Jain, Director, DilipBuildcon Ltd said that in 2003, when DBL started expanding its business by taking up several road infrastructure projects, the company decided to buy internationally reputed brands. It planned on focusing over a single brand for each segment of machines, which would help in getting good service and simplify parts procurement.

Dilip Suryavanshi, managing director of Dilip Buildcon said that now the company has a fleet of world famous brand machines, which have helped them complete their projects in time without compromising on quality.

Devendra stated that, “In 2003 we started taking  our business to an extend framework ventures. We chose to purchase first class universal brands,” he said, “however use a solitary brand for every fragment of machines. This would guarantee quality administration and acquisition,” he says, “We now have an armada of incredibly famous brand machines that empower us to finish our undertakings on time without compromising on quality.”

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By the FY 2015 revenue amounting Rs 11000 is expected by Dilip Buildcon

One of the largest Engineering Procurement Construction company of the country – Dilip Buildcon – is in a matter of seconds executing organizes over Rs. 6000 Crore. DBL has transformed into the greatest private sector company focusing Engineering Procurement Construction. DBL has seen a 100% advancement year-on-year all through the past 10 years.

The company deploys cutting-edge equipment to build roads and bridges, water sanitation and sewage, power and telecom transmission towers, transmission lines, irrigation, industrial, commercial and residential buildings. The company does not believe in subcontracting. All its projects are executed and completed before schedule with the help of their equipment bank.

Devendra Jain, Director, DilipBuildcon Ltd said that in 2003, when DBL started expanding its business by taking up several road infrastructure projects, the company decided to buy internationally reputed brands. It planned on focusing over a single brand for each segment of machines, which would help in getting good service and simplify parts procurement.

Dilip Suryavanshi, managing director of Dilip Buildcon said that now the company has a fleet of world famous brand machines, which have helped them complete their projects in time without compromising on quality.

Devendra expressed that, "In 2003 we began taking our business to a broaden system framework. We bought top of the line widespread brands," he said, "however utilize a single brand for each section of machines. This would ensure quality organization and securing," he says, "We now have a task force of inconceivably well known brand machines that enable us to complete our endeavors on time without bargaining on quality."

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A grader, also commonly referred to as a road grader, a blade, a maintainer, or a motor grader, is a construction machine with a long blade used to create a flat surface during the grading process. Typical models have three axles, with the engine and cab situated above the rear axles at one end of the vehicle and a third axle at the front end of the vehicle, with the blade in between.

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Equitable Hybrid Annuity Model appreciated by Dilip Suryavanshi

Government  acquired Hybrid Annuity Model for making installments to Highway Developers. Under HAM, Government would be making yearly payouts to these engineers amid the whole length of time of an undertaking. This is being done keeping in mind the end goal to stay away from the issue of monetary that the contractual workers feel. Dilip Suryavanshi of Dilip Buildcon finds this prior installment system and values the progressions. The prior installment technique included giving expanding yearly installments that end with higher installments toward the end of the concession period. Hybrid Annuity Model (HAM) is a mix of engineering, procurement and construction and build-operate-transfer formats, with the government and the private companies sharing the project cost 40:60. Dilip Buildcon appreciates the change to HAM as under this, land acquisition and environmental clearances will be handed over to developer before the construction commences. Paying equitable annuity payments will lead to a reduction in the need for funds, result in early payback and make road projects more lucrative for the developers. The model Concessionaire Agreement (MCA) would be changed accordingly for projects which will be awarded under the recently conceptualized hybrid annuity model. This would be first implemented for the the Delhi-Meerut expressway project. National Highways Authority of India chairman Raghav Chandra said developers will now receive equitable annuity payment. The Narendra Modi-led NDA government has identified road construction as a key priority area and set itself a target of building 50,000 km roads, with an investment of .`5 lakh crore over next five years. It has also set a target of increasing the construction speed from 17 km of roads per day to 30 km by March next year.

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Dilip Buildcon: Development of Action plan

The Board has constituted a Risk Management Committee consisting of the following members and defined the Committee’s role and responsibility:- 

1. Mr. Dilip Suryavanshi 

2. Mr. Devendra Jain 

3. Mr. Ashwini Verma 

4. Mr. Amogh Gupta and 

5. Mr. Abhishek Shrivastava (Secretary of the Committee) 

The Committee shall not only assist in implementation of the Risk Management Plan of the Board but also monitor its implementation and review. 

The members of the Risk Management Committee shall discharge the role of “Think Tank”, ideate and bounce off their collective suggestions to the Board for periodic updation of the Risk Management Plan to ensure that the same is in sync with changing macro and micro factors having bearing on all material aspects of the businesses the Company is engaged in or shall undertake. 

The Risk Management Committee shall critically examine the report of Mr. Devendra Jain, Executive Director & CEO and each identified risk shall be assessed for its likely impact vis a vis the resources at the Company’s disposal.