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Karda Construction Ltd IPO Review (Price, DRHP, GMP)

Karda Construction Ltd IPO Review

Karda Constriction Limited (KCL) is engaged in the construction business. This is a real estate development company which develops and sells residential and residential-cum-office projects in Nashik, India. KCL is launching their new issue to be listed on the Indian stock exchanges. Tomorrow is the issue date, I checked the issue price and issue details from the draft red herring prospectus and also checked the grey market premium to present the Karda Construction Ltd IPO Review for you.

About Karda Construction Ltd IPO :

  • IPO Opens on – March 16, 2018.
  • IPO Closes on – March 21, 2018.
  • Face Value – Rs. 10 Per Equity Share.
  • Issue Price – Rs. 175 – Rs. 180 Per Equity Share.
  • Issue Type – Fixed Price Issue IPO.
  • Retail Allocation – 35%
  • Market Lot – 80 Shares.
  • Minimum Order Quantity – 80 Shares.
  • Issue Size – 4,300,000 Equity Shares of Rs 10 aggregating up to Rs 77.40 Cr.
  • Listing Exchange – BSE NSE.
  • Draft Prospectus – Click Here.

Objectives of the issue:

  • Part repayment of overdraft facilities.
  • Part repayment of term loans.
  • General corporate purpose.
  • Issue related expenses.

About The Company –

  • Karda Constriction Limited is incorporated in 2007.
  • This company has successfully completed and delivered 15 residential projects and office space projects like Hari Smruti, Hari Amantran, Hari Shrushti, Hari Kunj, Hari NiwasHari Niketan, Hari Sankalp, etc.
  • Karda Constriction Limited currently has 13 Ongoing and 3 Planned projects.
  • This company has received β€œMega Builder of the Year” award of Divya Marathi, for having exceptional performance in the real estate segment in Nashik.
  • Karda Constriction Limited is expected to provide an estimated total Carpet Area of 17,13,725 square feet.
Karda Construction Ltd
Karda Construction Ltd
Karda Construction Ltd

Promoters of the company :

  • Mr. Naresh Karda, is the promoter of this company.

Company Financials:

Financial Details

Karda Construction Ltd IPO Review:

In this week three heavyweight initial public offerings are on the primary markets: (1) Bharat Dynamics IPO, (2) Bandhan Bank IPO and (3) Hindustan Aeronautics IPO. But still, KCL has an excellent financial report. The profit graph has risen evenly and steadily over the years.

The earnings per share are 6.65 as per the financial year 2017 and the price to earnings ratio is 20. The PE ratio is in line considering the peer companies like Kolte Patil and Arihant Super. The GMP is quoting above Rs. 15 to Rs. 20 above the issue price. Our Karda Construction Ltd IPO Review has a POSITIVE view of this new issue for long-term investors. However, short-term traders looking for quick listing gains must check the institutional activity on this issue on the last day of application.

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