MUMBAI, March 13, 2018 (GPN) : Dhruv Consultancy Service Ltd (henceforth referred to as ‘Dhruv’ or ‘Company’), is engaged in the business of providing infrastructure consultancy services like design, engineering, procurement, construction and project management services for Highways, Bridges, Tunnels, Architectural and Ports etc. The company is now entering the capital markets with an initial public offer of 43,00,000 equity shares of face value Rs10 per share being offered through this issue at price of Rs 54/- per equity share.
The funds raised through the public issue are proposed to be utilized for prepayment of debt, part Finance the working capital requirement, to meet general corporate purposes and to meet issue expenses. The equity shares of the company are proposed to be listed on the SME Platform of Bombay Stock Exchange Ltd. (‘BSE’). The Book Running Lead Managers to the Issue are Hem Securities Ltd. And Registrar to the issue are Sharex Dynamic (India) Pvt. Ltd. And Hem Securities Ltd will be the Market Maker to the Issue.
The Issue is being made through the Fixed Price Process wherein 50% of the Net Issue shall be available for allocation on a proportionate basis to Retail Investors, and balance 50% of the Net Issue shall be available for allocation on a proportionate basis to Non-Retail Investors, irrespective of the number of specified securities applied for, in accordance with SEBI ICDR Regulations, subject to valid Bids being received at or above the Issue Price. The unsubscribed portion in either category specified above may be allocated to the applicants in the other category.
About Dhruv Consultancy Services Ltd.
Dhruv Consultancy Services Ltd established on 26th August, 2003, and based in Navi Mumbai, provides infrastructure consultancy for the highways, bridges, tunnels, architecture, environmental and the ports. The service offerings include preparation of DPR (Detailed Project Report), feasibility study for infrastructure projects, construction supervision, operations & maintenance works, Project planning, designing, technical & structural audits etc.
Over the years the company has worked on more than 41 projects with esteemed clients like Ministry of Road Transport & Highways (MORT&H), NHAI, MSRDC, CIDCO, JNPT, MMRDA and PWD (Govt. of Maharashtra) to name a few key clients. Being a consultancy firm intellectual capital is the most valuable asset for the company. With an employee base of 313, out of which more than 240 are qualified engineers. Technical know-how and experience of the management, has helped the company to establish a niche for itself and record CAGR of more than 72% in profitability since inception.
Huge opportunities are there to grow for Dhruv in the infrastructure consultancy business. As India would need investments in excess of Rs 50 lakh crore in infrastructure sector to give boost to its GDP growth. Since independence to liberalization the government has been able to invest only 3% of its GDP in infrastructure which resulted in big funding gap. While emerging markets have typically invested around 7% ~ 10% of GDP in Infrastructure. The subsequent governments have now corrected that and have increased the spend from 5% of GDP during the 10th five-year plan period to 7% during the 11th five-year plan period (2007-2012). The infrastructure consulting market is assumed to be 1% to 1.5% of the total infrastructure investment which would be ~Rs 550 bn.
In the past, Dhruv has been awarded with many certificate of appreciations, but recently it received one from the Ministry of Road Transport and Highways for completion of three lane (16mtrs), 239meters long major high-level bridge with 640meters long approaches across Savitri river in a record period of 165days. The company further intends to grow its consultancy business by adding new verticals and offerings for segments like Railways and metro, smart city and solar power sector. The company also intends to bag consultancy contracts of iconic projects, expressways by forming Joint Ventures with foreign firms who can be eligible. For the purpose, company has signed MoU with three well known International firm ‘Consistent Engineering Consultants’ (Dubai), ‘HSS Engineers BERHAD’ (Malaysia), ‘TUV Nord’ (Germany) and ‘Walter P Moore’ (Texas, USA).
The total revenues of the company as restated in the financial statements of the DRHP has shown a CAGR of 56.27% to Rs30.46crore in FY17 from Rs 5.11crore in FY13. In the same period the profit growth has shown a remarkable CAGR of 72.85% to Rs3.08crore in FY17 as compared to Rs34.52lakh in FY13. Further the company is sitting pretty on strong order book of Rs 131.41crore as on December 2017 which includes both portion of unexecuted from existing contracts and LOA’s (letter of acceptance).
Company has benefited from the experience of its promoters who are actively involved in the management. Mr Pandurang Dandawate the promoter of the company, has earlier worked as an executive engineer with PWD and MSRDC and has more than three-decade experience in the infrastructure sector. Ms Tanvi Auti, who is also a civil engineer by profession and has earlier worked with companies like Hiranandani Construction and Simplex Infrastructure ltd is currently the managing director of the company.
About Hem Securities Ltd.
Hem Securities Ltd is an award-winning merchant banker with more than 50SME IPO filings with clients ranging from services to brick & mortar manufacturing sectors also. With most of the companies by Hem having given positive returns over the issue price, speaks itself about its track record. Many of the companies brought to the market have been successfully received by the markets with issues witnessing subscriptions upto Rs 5000 cr and being more than 200x over – subscribed. Until now Hem has helped companies raise Rs350cr from the market and the total market capitalization of the companies is touching close to Rs 3500cr. For Hem the key focus is on fundamentally strong companies, thus quality of the issue, rather than quantity is of priority for them. As they believe in creating long term value for both, on one hand for the corporates whom they assist to tap capital markets and also the investors who should make money through issue brought by them to the market.ENDS