Listened to the company’s conference call following the Adani acquisition. Key points discussed about the acquisition are as follows:
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The promoters are selling their stake at ₹575 per share, whereas the QIP was conducted at over ₹650 per share.
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The rationale behind the stake sale is leveraging the Adani Group’s expertise and unlocking opportunities in various projects such as airports, Dharavi redevelopment, data centers, etc. (Additionally, the Adani Group is aiming to build its EPC companies for its projects).
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The company is projecting EBITDA margins of 10% or higher.
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Out of the current order book of ₹6,000+ crore, only ₹500 crore pertains to the Adani Group.
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There is an agreement between the Adani Group and the promoters ensuring 50:50 ownership, even after the open offer.
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The promoters are obligated to remain with the company for at least five years and cannot exit during this period.
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The promoters expect better utilization of the precast facility, which is likely to be margin-accretive and significantly reduce the construction cycle.
Disclaimer: I invested during today’s dip caused by the Adani-US issue. I’ve been following this company for over three years.
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