Consolidated Construction ends with 57% premium

Consolidated Construction ends with 57% premium


It was a stunning performance from Consolidated Construction on the listing day. The stock surged 61.81% to Rs 825.25 in an intraday trade before closing the day at Rs 791.45, a premium of 55.19% over its offer price of Rs 510. The stock had maintained Rs 750 level through the day. Company’s strong outlook about their FY09 revenues on the back of good order book and phenomenal strength in markets (Sensex hit 19000 mark and also closed above that level) also helped the stock.

R Sarabeswar, chairman and CEO of Consolidated Construction Consortium, said they will execute an order book of Rs 2,070 crore in 15 months. 85% of the orders are covered by escalation clauses. He sees FY09 revenues at Rs 1,700-1,800 crore. About 12% of the orders are seen coming from the government next year.

The stock closed at Rs 791.45, with volumes of 58,28,788 shares on the BSE. It has touched a high/low of Rs 825.25 and Rs 736.20.

On the NSE, it rose 57.06% to end the day at Rs 801, with volumes of 70,58,707 shares. It has hit a high of Rs 889.90 and low of Rs 735. The turnover stood at Rs 546.23 crore.
The company had enterd capital market with a public issue of 37,00,000 equity shares of Rs 10 each at price band of Rs 460-510 per equity share. The issue was subscribed 81.18 times.
The company raised Rs 188.70 crore from the issue at price of Rs 510 per share, a higher end of price band. The company will use this money to finance the acquisition of construction infrastructure, investment in subsidiaries, expenditures towards skill and management development centre, repayment of loans and expenditure for general corporate purposes.



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