SPL weBlog

Type of Issue : Book Built

Issue Opens: 10 July, 2007
Issue Closes: 13 July, 2007
Issue Size : 3,000,000 (No. of Shares)

Lower Price Band: Rs.170
Upper Price Band: Rs.185
Total Issue Size: RS.56 Crores

Application Multiple: 30 and in multiples there off starting with at least 30 shares.

Maximum Shares: 540 (for Retail)

Information URL : http://www.simplexprojects.com/
Prospectus URL : http://www.sebi.gov.in/dp/simplexdrfredher.pdf

Company Details :
Address : 12/1, NELLIE SENGUPTA SARANI, KOLKATA - 700 087.
Email : ipo@simplexprojects.com
Contact Details : 913332923330 /913322528013 (fax)

ISSUE Description:
Company Background:

Simplex Projects Limited, is an ISO 9001:2000 certified construction company providing integrated engineering, procurement and construction services for Civil and Structural construction and Infrastructure projects.
Simplex Projects is in the construction business since 1990 and has worked in 16 states in the country focusing on areas such as:
• Piling and Foundations
• Civil construction projects, which include structures such as commercial and residential complexes, mass
• Housing projects, townships, industrial structures;
• Transportation engineering projects including bridges, flyovers, underpasses, road projects; and
• Irrigation, Water supply and Sewarage Schemes.
• Installation and operation of Multi Level Car Parking Systems.

Multi-Level Automated Car Parking System
(Subsidiary – Simpark Infrastructure Pvt. Ltd.)
A wholly owned Subsidiary, Simpark Infrastructure Private Limited is engaged in the business of Installation, Development, Operation and Maintenance of Multi-level Automated Car Parking Systems. The business plan focuses attention on the aspect of alleviation of the problems associated with vehicular parking, the alternate technologies which have replaced the conventional modes of parking garages resulting in higher ground area utilization.

The Company’s portfolio of completed and ongoing civil construction projects includes commercial and residential buildings, group housing projects and townships, industrial structures, hospitals and universities and educational campuses. In the infrastructure portion of the company’s business, their projects fall broadly into the following categories: transportation engineering, and irrigation & water supply. In the transportation engineering category, They have constructed roads, bridges, flyovers and underpasses. In the irrigation & water supply category, they have built water supply and sewerage projects. The company has also completed various piling projects. Further, their Subsidiary is involved in the business of installation, development, operation and maintenance of multi-level Automated Car Parking Systems. Their Subsidiary has already completed one multilevel fully automated car parking project for 214 cars while the second underground fully automated parking project for 250 Cars is partially operational and remaining part is in the final stages of completion.

Their Plant and Equipment resources consist of large fleets of piling and construction equipment like Piling Rigs, Boring Equipment, Modern Batching Plants, Excavators, Dumpers, latest Cranes and many more. Their fleet of piling equipments is among the largest in Eastern India. They have technical collaborations with International construction companies for advanced techniques for construction business.

The company had entered into an agreement with EWW Verenigde Bedrijven, a Dutch company, for transfer of technology relating to designs, construction, commissioning and installation of parking systems for India, South-East Asian countries, Sri Lanka and other companies.

Objective:

Augment Long Term Working Capital Requirement;
• Acquire Plant & Machineries
• Investment in Subsidiary
a) For Purchase of Design and Technology for Semi and Fully Automated Multi Level Car Parking Systems.
b) For Development of Designs and Setting up of Fabrication Unit.
c) For meeting the expenses of Marketing and Promotion of Parking Systems.
• Meeting the Public Issue Expenses
Key Financials for the year ended March 31, 2007
Revenue Rs.1362.42Mln PAT Rs.123.84Mln
EPS Rs.15.47/- RONW 20.80%

Recommendation :

Pioneer in the Autumated Muti-level Car Parking, besides specialization in their piling business gives Simplex an edge. Apply for listing gains.

News source

Integrated engineering and construction service provider Simplex Projects Ltd is to enter the capital market with an initial public issue of 30-lakh equity shares of Rs 10 each in the price band of Rs 170-Rs 185 through a 100 per cent book building process. The issue opens on July 10 and closes on July 13. The net issue will constitute 25 per cent of the fully diluted post issue paid up capital of the company.

No more than 50 per cent of the net issue will be available for allocation on a proportional basis to qualified institutional buyers. Five per cent of the QIB portion is for allocation on a proportionate basis to mutual funds only.

The remainder is for allocation on a proportionate basis to QIBs and mutual funds.

Further, not less than 15 per cent of the net issue will be available for non- institutional bidders and not less than 35 per cent of the net issue will be available for allocation on a proportionate basis to retail individual bidders.

News source

MUMBAI: Simplex Projects Ltd’s initial public offering of 30 lakh equity shares through 100% book building route opened on Tuesday. The company has priced the Rs 10 share in the Rs 170-185 range. The issue closes July 13.

The company is into construction business, providing integrated engineering, procurement and construction services for civil and structural construction and infrastructure projects.

The net issue will constitute 25% of the fully diluted post-issue paid-up capital. UTI Securities is the book running lead manager and Cameo Corporate Services the registrar.

The equity shares will be listed on BSE and NSE.

The IPO proceeds are mainly for long term working capital, to acquire plant and machinery, and invest in subsidiary Simpark Infrastructure Pvt Ltd.

Simplex Projects’ total income grew to Rs 82.57 crore in 2006-07 (Apr-Mar) from Rs 41.82 crore in 2002-03. Net profit for the period rose to Rs 3.81 crore from Rs 67.65 lakh.

Total income for the year ended Mar 31, 2007 stood at Rs 136.24 crore and net profit Rs 10.49 crore.

News Source

Simplex Projects

Building on opportunities in Kolkata
Wholly owned subsidiary installs, develops, operates and maintains multi-level automated car parking systems

———————————————————————————–

Simplex Projects is under the control of Balkrishandas Mundhra, who has separated from his brother. (The brother runs the already listed Simplex Infrastructure.) Portfolio of completed and ongoing civil construction projects includes commercial and residential buildings, group housing projects and townships, industrial structures, hospitals, and universities and educational campuses. The infrastructure projects have been in the road, and irrigation and water supply segments.

Simpark Infrastructure, a wholly owned subsidiary of Simplex Projects, installs, develops, operates and maintains multi-level automated car parking systems in Kolkata. It has completed two multilevel, fully-automated car parking projects.

To fund the acquisition of plant and machinery, investment in subsidiary, and augment long-term working capital, Simplex Projects is coming out with an IPO.The price band has been fixed at Rs 170-185. The issue opens on 10 July and closes on 13 July 2007.

Strengths

• The order book of Rs 290 crore represents two times the reported financial year ending Mach 2007 (FY 2007) revenue. The schedule dates for completion of projects range from July 2007 to March 2009.

• Each of the verticals is witnessing significant investment.

Weaknesses

• Over-dependant on construction opportunities in and around Kolkata.

• Negative net operating cash flow in FY 2005, FY 2006 and FY 2007

• The pilling segment has the highest earning before interest, depreciation, tax and amortisation (EBIDTA) margin of about 22-23%. The execution period of pilling contracts, which are of small size, is low. Thus, the growing order book could make it difficult to maintain the proportion of pilling business, thereby impacting margin.

Valuation

Standalone FY 2007 EPS on post-issue equity works out to Rs 8.7. Simplex Projects has not given consolidated financials. If one simply adds the profit of the subsidiary to the standalone profit, the consolidated EPS works out to Rs 11.3. At the offer price band of Rs 170-Rs185, the P/E range on the basis of standalone EPS works out to 19.5 to RS 21.3 and on the basis of assumed consolidated earning it is 15.4-16. Unity Infraprojects, the nearest comparable company, is trading at P/E of around 21.

Kolkata, Apr 19 Simplex Projects Ltd is entering into the retail car parking space and wants to sell semi-automatic car parking solutions to society-managed apartments and multiplexes.

The Rs 130-crore construction company, which specialises in automated multi-level car parking system, will soon put up model car parking space in four metros to showcase the semi-automatic technology it is getting from a Korean company.

Said Pradeep K Mishra, senior vice-president (finance & accounts), “We believe there is a market for retail car parking technology specially in cities where parking costs are gradually increasing. The technology will enable, say, four cars to be stacked up on one another.”

According to Mishra, monthly car parking fees in apartments at Nariman Point in Mumbai could be as high as Rs 15,000.

Mishra said Simplex, to begin with, would bring four prototype models from the Korean firm. “Once the technology transfer is over, we will start manufacturing the entire system in Kolkata.”

Simplex on Thursday signed a technology transfer agreement with EWW, a Dutch company, for a fully automated car parking system. It will sign another agreement with the Korean company for the technology transfer of the semi-automated parking system.

The money to fund these technology collaborations comes from the private placement of 14 lakh shares at Rs 70 per share to Enam Securities. “We are spending part of the proceeds on technology acquisition.”

Simplex Projects has created a fully-automated multi-level car parking system for 280 cars on built-own-operate & transfer (BOOT) basis for a period of 20 years at New Market, Kolkata.

The company is working with the Delhi Municipality Corp as a consultant for development of 11 car-parking zones. Simplex will develop another three zones itself.

The company is also planning for an initital public offer of 30,00,000 equity shares and plans to raise around Rs 50 crore.

Today the equity shares of Kolkata-based integrated infrastructure player Simplex Projects were listed at Rs 323.75 or 75% premium to its issue price of Rs 185 on the BSE.

During the day, the scrip touched an intraday high of 323.75 and low of 266.70. Lastly, the company’s shares closed at Rs 272.05, an increase of 47%.

There were 6,719.672 shares for trading on the BSE counter.

SPL is a supplier of integrated engineering, procurement and building services. The IPO of the company was oversubscribed 84.74 times. The price band for the issue was Rs 170 to Rs 185 per share. The company’s shares were listed on both BSE and NSE.

Simplex Projects chiefly aims to deploy the issue proceeds to expand permanent working capital necessity, acquire plant and machineries and to invest in subsidiary.

News Source

Kolkata April 19 The city-based Simplex Projects Ltd (SPL) has joined hands with EWW Verenigde Bedrijven B.V. of Holland for developing integrated total solutions for automated car parking, also labelled as “EcoSafe Parking”.

SPL on Thursday signed an agreement with the Dutch company for transfer of technology and technical information and specifications relating to design, construction, commissioning and installation of parking systems for projects in India and other South East and South Asian countries such as Singapore, Sri Lanka, Nepal, Bangladesh and Maldives. Under the agreement, SPL will have the exclusive right for such systems.

Briefing newspersons here after the pact signing ceremony, Mr R.D. Mundhra, Director, SPL, said EWW EcoSafe Parking, which has installed 32 underground systems in Holland itself, besides many more in other European countries, is a global player in this field.

The 20-million Dutch ToT partner, he said, has in-house technical expertise for technology upgradation on a continuing basis.

Mr B.K. Mundhra, CMD, said SPL’s agreement with the Delhi Municipal Corporation, involved setting up of automated car parking systems in as many as six locations in the first phase, on a consultancy basis (involving a fee) for most of the projects.

These are Mehrauli, Lajpat Nagar, Ramlila Ground, Kamala Nagar and Hamilton Road. Three other locations have been identified for construction in the second phase. Hand-over of land, however, is yet to be completed.

Pointing out that no single entity can on its own execute all the projects, Mr Mundhra said the work, involving civil engineering and related work, is estimated to cost around Rs 90-100 crore. The company expects to add at least Rs 3-4 crore to its bottom line on each of the projects at different sites.

He said SPL was also in talks with New Delhi Municipal Corporation and Delhi Tourism Corporation for installation of such hi-tech parking systems in the National Capital Region. Talks with other municipal bodies of Mumbai, Bangalore, Chennai, Hyderabad and Jaipur are also.The company is now working on various models of financing and execution of work at each of these locations, and the total cost outlay is estimated at around Rs 500 crore.

Mr Mundhra said the company is also expecting some 3 to 5 more projects to come up in Kolkata, after the Loudon Street and New Market underground parking systems, with a facility to park some 200 to 300 cars at each location. The number will, however, be much more in big cities such as Mumbai or Delhi, where the car-parking requirement at each location could be between 800 and 1,200.

News Source

It is reported that Simplex Projects Limited, in JV with Kolkata Metropolitan Development Authority, has been awarded the contract for development and management of multi level car parking project at Kolkata under built operate & transfer basis under.

The project consists of multi level car parking for about 600 cars and a commercial complex and is to be completed within a time span of 18 months.

Simplex has signed the concession agreement on March 6th 2008 in respect of the above project with the Kolkata Metropolitan Development Authority. It is also entering into a MoU with the Future Group in respect of the leasing of the commercial complex.

News Source