KMC Construction may come out with an IPO to raise funds for expansion expansion-cum-diversification plans of entering into solar power generation and BOT projects in railways and also to provide an exit route to the PE investors.
Founded by Raja Mohan Reddy in 1970, KMC Construction is a diversified infrastructure development company. Company which started as a contractor focused on highways and toll roads, went on to bid for BOT projects to emerge as an asset development firm. Most of its road projects have 20-to-25-year concession agreements with the government.
Transaction Reference: BL
KMC's portfolio has 10 projects developing around 5,000 km roads in Rajasthan, Orissa, Kerala, Karnataka and Andhra Pradesh. Currently, it has order book in excess of Rs.7,000 Cr.
Operational Performance of the company
| (Rs Mn) | 2010 | 2009 | 2008 |
| Sales | 9878.93 | 8919.91 | 7620.2 |
| EBITDA | 1823.73 | 1385.02 | 1054.38 |
| PAT | 410.19 | 465.71 | 436.34 |
| Share Capital | 159.86 | 159.86 | 1859.35 |
| Reserves | 4072.07 | 3661.88 | 1496.67 |
| Total Debt | 7323.05 | 4767.85 | 2287.27 |
The company has raised funds from IDFC, Sequoia and Blue River Capital. Currently, Blue River Capital holds 12.22% through its unit Ares Investments, Sequoia Capital holds 9.10% stake, while IDFC Ltd owns 3.40% stake in the company. The balance 75.28% stake is held by promoter and promoter group.
3i Group has also invested Rs500Cr in KMC Construction's SPV through it's India Infrastructure Fund. The SPV is the holding company of concession-based toll roads and some BOT projects.
Also, SNC-Lavalin Mauritius Ltd, an affiliate of Canadian-based engineering firm SNC-Lavalin, has invested Rs.160 Cr in Rayalaseema Expressway Ltd. Rayalaseema is a SPV led by Hyderabad-based KMC Constructions to build and operate on National Highway 18 connecting Kadapa and Kurnool in Andhra Pradesh at the cost of more than Rs.16,000 Cr.
| |
4134
3846
945
4260
973
|
|
17649
42
1677
25526
3005
|
|
1369
459
3151
32715
140
|
|
24632
|
|
KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
| 21/09/11 |
KMC Constructions - IPO |
IPO / Offerings |
|
- |
| 28/03/11 |
KMC Constructions - 3i India Infrastructure Fund |
Private Equity |
3i India Infrastructure Fund |
111.57 |
| 15/09/10 |
KMC Constructions - 3i India Infrastructure Fund |
Private Equity |
3i India Infrastructure Fund |
- |
| 17/01/08 |
KMC Constructions - Infrastructure Development(PE) |
Private Equity |
Infrastructure Development Finance Company Limited |
6.08 |
| 12/04/07 |
KMC Constructions - Sequoia, Blue River |
Private Equity |
Sequoia Capital India |
35.00 |
| Date | Type | Buyer | Target | Size ($mn) | State |
| 17/05/12 |
M&A |
CESC Limited |
Pachi Hydropower Projects Limited |
- |
Completed |
| 17/05/12 |
M&A |
CESC Limited |
Papu Hydropower Projects Limited |
- |
Completed |
| 14/05/12 |
M&A |
Jain Irrigation Systems Limited |
NaanDanJain Irrigation Limited |
- |
Completed |
| 10/05/12 |
M&A |
IRB Infrastructure Developers Limited |
MVR Infrastructure And Tollways Private Limited |
24.39 |
Completed |
Fund |
| Name | Corpus | Target Sector | Website | KeyContact |
| Sequoia Capital India |
|
BFSI
Healthcare
Retail
Infrastructure |
http://www.sequoiacap.com |
Rajiv Sabharwal Mohit BhatnagarSumir ChadhaGautam MagoShailesh LakhaniPorko ElangoAbhay Kumar PandeyK P. BalarajShailendra SinghSurendra JainG V RavishankarV T BharadwajNikhil BalaramanTaru Kapoor
|
Company |
| Name | Promoters | Office | Competitor | Website |
| KMC Constructions Limited |
|
555, Arora Colony, Road No.3, Banjara Hills. |
Consolidated Construction Consortium Limited |
http://www.kmcgroup.co.in |
