Srinibas Pradhan Constructions Ltd IPO
Status: Closed
Overview
IPO date
06 Mar 2026 to 10 Mar 2026
Face value
₹ 0 per share
Price
₹ 91 to ₹98 per share
Issue Size
2,073,600 shares
(aggregating up to ₹ 20.32 Cr)
(aggregating up to ₹ 20.32 Cr)
Allotment Date
11 Mar 2026
Listing at
NSE
Issue type
Book Building - SME
Sector
Infrastructure Developers & Operators
Objectives of Srinibas Pradhan Constructions Ltd IPO
Srinibas Pradhan Constructions Ltd IPO Strategy
About Srinibas Pradhan Constructions Ltd
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T&C*
Strengths vs Risks of Srinibas Pradhan Constructions Ltd
Know the pros & cons
Strengths
Focused on Infrastructure and civil construction.- Experienced management team.
- Experienced workforce.
- Strong Backward Integrations.
- Strong Order Book from various government agencies, local bodies and private companies.
- Strong execution capabilities with industry experience.
- Strong Order Book from various government agencies, local bodies and private companies, collectively in the
Company and its wholly-owned Subsidiary.
Risks
- Its business operations are focused primarily in the State of Odisha. The company relies heavily on projects undertaken or awarded within Odisha, by entities such as the local authorities, municipal bodies, and other organizations operating in the state. As a result, its revenue streams are derived entirely from contracts with a limited number of entities, exposing it to risks arising from economic, regulatory, and other changes specific to Odisha. Any adverse changes in central or state government policies could potentially lead to foreclosure, termination, restructuring, or renegotiation of its contracts. Such developments could significantly impact the company business operations and financial results.
- The company depends on certain key customers for its revenues. A decrease in the revenues the company derives from them could materially and adversely affect its business, results of operations, cash flows and financial condition.
- The Company depends on the knowledge and experience of its Promoters, Ramakanta Pradhan
and Srinibas Pradhan for its growth. The loss of their services may have a material adverse effect on its business, financial condition and results of operations.
- The company has in past entered into related party transactions and its may continue to do so in the future.
- Its may not maintain profitability in the future.
- The Company has a negative cash flow from its operating and investing activities in past three years, details of which are given below, sustained negative cash flow could impact its growth and business.
- The company may be exposed to liabilities arising from defects during construction, which may adversely affect its business, financial condition, results of operations and prospects.
- Its business is capital intensive because of which the company may experience insufficient cash flows to meet required payments on its debt and working capital requirements, there may be an adverse effect on the results of its operations.
- The company operates in a competitive industry and its failures to successfully compete may adversely affect the company business, financial condition and results of operations, and prospects.
- Increases in the prices of materials & services such as construction materials, fuel, labor, equipment maintenance, and other construction related expenses could have an adverse effect on its business, results of operations and financial condition.
- Obsolescence, destruction, theft, breakdowns of its major plants or equipment or failures to repair or maintain the same may adversely affect its business, cash flows, financial condition and results of operations.
- The company operations could be adversely affected by strikes, work stoppages or increased wage demands by its employees or any other kind of disputes with the company employees and contract labour.
- There have been certain inadvertent inaccuracies, delay and non-compliances with respect to certain
regulatory filings and corporate actions taken by the Company. Consequently, its may be subject to
regulatory actions and penalties for any past or future non-compliance and its business and financial condition may be adversely affected.
- The company does not own certain premises used by the Company. Disruption of its rights as licensee/ lessee or termination of the agreements with the company licensors/ lessors would adversely impact its manufacturing operations and, consequently, the company business.
- There are pending litigations against the company, its Promoters, the company Directors and its Wholly Owned Subsidiary and any adverse decision in these proceedings may render it/them liable to liabilities/penalties and may adversely affect its business, result of operations and financial
conditions.
- Compliance with, and changes in, environmental, health and safety laws and regulations or stringent enforcement of existing environmental, health and safety laws and regulations may result in increased liabilities and increased capital expenditures may adversely affect its cash flows, business results of operations and financial condition.
- The Company has applied for registration of certain trademarks in its name. Until such registrations are granted, its may not be able to prevent unauthorised use of such trademarks by third parties, which may lead to the dilution of its goodwill.
- The company agreements with various banks for financial arrangements contain restrictive covenants for certain activities and if the company is unable to get their approval, it might restrict its scope of activities and impede the company growth plans.
- Its Promoter and a member of the company Promoter Group have extended personal guarantees with respect to loan facilities availed by the Company. Further, its Promoter has provided his property as
collateral security for loan facilities availed by the Company. Revocation of any or all of these
personal guarantees or withdrawal of such property may adversely affect its business operations and
financial condition.
- Its operations are subject to accidents and other risks and could expose it to material liabilities, loss in revenues and increased expenses.
- The company Promoters and members of Promoter Group hold Equity Shares and have interests in its
performance in addition to their normal remuneration or benefits and reimbursement of expenses incurred.
- Its inability to procure and/or maintain adequate insurance cover in connection with the company business may adversely affect its operations and profitability.
- The average cost of acquisition of Equity Shares held by its Promoter could be lower than the Issue
Price.
- The company has issued the following shares (other than bonus issues) within the last twelve months prior to the date of this Draft Red Herring Prospectus at a price lower than the issue price.
- The company future fund requirements, in the form of further issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.
- In addition to its existing indebtedness for the company existing operations, its may incur further indebtedness during the course of business. The company cannot assure that its would be able to service the company existing and/ or additional indebtedness.
- The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Further, the company has not identified any alternate source of financing the `Objects of the Issue'. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.
- The Company has not paid any dividends in the past and its may not be able to pay dividends in the
future.
- The deployment of funds is entirely at its discretion and as per the details mentioned in the chapter titled "Objects of the Issue".
- The company's business operations are focused primarily in the State of Odisha.The company relies heavily on projects undertaken or
awarded within Odisha, by entities such as the local authorities, municipal bodies, and other organizations
operating in the state. As a result, the company's revenue streams are derived entirely from contracts with a limited number
of entities, exposing the company to risks arising from economic, regulatory, and other changes specific to Odisha. Any
adverse changes in central or state government policies could potentially lead to foreclosure, termination,
restructuring, or renegotiation of the company's contracts. Such developments could significantly impact its business
operations and financial results.
- The company depends on certain key customers for the company's revenues. A decrease in the revenues the company derives from them could
materially and adversely affect its business, results of operations, cash flows and financial condition.
- As of February 15, 2026, the company's Order Book, on a consolidated basis, was Rs. 18406.95Lakhs Projects included in the company's
Order Book may be delayed, modified or cancelled for reasons beyond the company's control, or not fully paid for by the company's
clients, which could materially harm its cash flow position, revenues or profits.
- The company has in past entered into related party transactions and the company may continue to do so in the future.
- The company may be exposed to liabilities arising from defects during construction, which may adversely affect its business,
financial condition, results of operations and prospects.
- The Company is dependent on few suppliers for purchase. Loss of any of these large suppliers may affect its
business operations.
- The Company depends on the knowledge and experience of the company's Promoters, Ramakanta Pradhan and Srinibas
Pradhan and other key managerial personnel for its growth. The loss of their services may have a material adverse
effect on the company's business, financial condition and results of operations.
- The Company has a negative cash flow from its operating and investing activities in past three years and stub
period, details of which are given below, sustained negative cash flow could impact its growth and business.
- The company's business is capital intensive because of which the company may experience insufficient cash flows to meet required
payments on the company's debt and working capital requirements, there may be an adverse effect on the results of the company's
operations.
- Some of the company's promoter group entities are engaged in the same line of business as that of the company and there can
be conflict of interests between the company and promoter group entities
- There have been certain inadvertent inaccuracies, delay and non-compliances with respect to certain regulatory
filings and corporate actions taken by the Company. Consequently, the company may be subject to regulatory actions and
penalties for any past or future non-compliance and the company's business and financial condition may be adversely affected.
- There are pending litigations against the company, the company's Promoters, the company's Directors and the company's Wholly Owned
Subsidiary and any adverse decision in these proceedings may render the company/them liable to liabilities/penalties and may
adversely affect its business, result of operations and financial conditions.
- The company operates in a competitive industry and the company's failures to successfully compete may adversely affect its business,
financial condition and results of operations, and prospects.
- Increases in Construction and Operating Expenses such as raw materials, machine hire charges, site expenses,
fuel, labour, repair & maintenance of machinery could have an adverse effect on the company's business, results of operations
and financial condition.
- Obsolescence, destruction, theft, breakdowns of the company's machinery or equipment or failures to repair or maintain the
same may adversely affect its business, cash flows, financial condition and results of operations.
- The company's operations could be adversely affected by strikes; work stoppages or increased wage demands by the company's employees
or any other kind of disputes with its employees and contract labour.
- The company does not own certain premises used by the Company. Disruption of the company's rights as licensee/ lessee or termination
of the agreements with its licensors/ lessors would adversely impact the company's manufacturing operations and,
consequently, the company's business.
- There have been certain instances of delays in payment of statutory dues in the past. Any delay in payment of
statutory dues in future, may result in the imposition of penalties and in turn may have an adverse effect on the company's
business, financial condition, results of operation and cash flows.
- Compliance with, and changes in, environmental, health and safety laws and regulations or stringent enforcement
of existing environmental, health and safety laws and regulations may result in increased liabilities and increased
capital expenditures may adversely affect its cash flows, business results of operations and financial condition.
- The Company does not have sanction letters of certain secured and unsecured loans availed by the Company and
by wholly owned subsidiary.
- The Company has applied for registration of certain trademarks in its name. Until such registrations are granted,
the company may not be able to prevent unauthorised use of such trademarks by third parties, which may lead to the dilution
of its goodwill.
- The company's agreements with various banks for financial arrangements contain restrictive covenants for certain activities
and if the company is unable to get their approval, it might restrict the company's scope of activities and impede its growth plans.
- The company has provided corporate guarantees in relation to a loan obtained by the company's wholly owned Subsidiary and any
default by the company's wholly owned Subsidiary may result in invocation of the parent guarantee.
- The company's Promoter and a member of the company's Promoter Group have extended personal guarantees with respect to loan
facilities availed by the Company. Further, the company's Promoter has provided his property as collateral security for loan
facilities availed by the Company. Revocation of any or all of these personal guarantees or withdrawal of such
property may adversely affect its business operations and financial condition.
- The company may be unable to pre-qualify to bid on certain larger construction projects on the company's own, and if the company is unable to
forge alliances with third parties, the company may be precluded from bidding for those large construction projects, which
could have an adverse effect on the company's growth prospects.
- Any delays in the schedule of implementation of the company's proposed objects could have an adverse impact on the company's business,
financial condition and results of operations.
- The company's operations are subject to accidents and other risks and could expose the company to material liabilities, loss in revenues
and increased expenses.
- The company's contingent liabilities could materially and adversely affect its business, results of operations and financial
condition.
- The company's Promoters and members of Promoter Group hold Equity Shares and have interests in the company's performance in
addition to their normal remuneration or benefits and reimbursement of expenses incurred.
- The company's inability to procure and/or maintain adequate insurance cover in connection with the company's business may adversely
affect its operations and profitability.
- The company requires working capital for its smooth day-to-day operations of business and any discontinuance or the company's
inability to acquire adequate working capital timely and on favourable terms may have an adverse effect on the company's
operations, profitability and growth prospects.
- Potential Legal and Accounting Risks Due to Loans Remaining in the Name of Promoter Post Business Transfer.
- Unsecured loans taken by the Company can be recalled at any time.
- After the completion of the Issue, the company's Promoters will continue to collectively hold substantial shareholding in the
Company.
- The company's operations may include activities that could be harmful to the health of labour/worker and other risks which
could expose the company to material liabilities and increased expenses and negatively impact employee morale.
- The directors of the company don't have the experience of the listed company and the requirements of being a
listed company may strain its resources.
- The company has a large work force and the company's employee benefits expense is one of the components of its fixed operating
costs. An increase in employee benefits expense could reduce the company's profitability. Further, the company's operations could be
adversely affected by work stoppages, shortage of labour, or increased wage demands by the company's employees or any other
kind of disputes with its employees.
- The company has obtained various approvals, licenses, registration and permits for the company's business and failures to renew them
in a timely manner may adversely affect its operations.
- The average cost of acquisition of Equity Shares held by the company's Promoter could be lower than the Offer Price.
- The company's future fund requirements, in the form of further issue of capital or securities and/or loans taken by the company, may be
prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.
- In addition to the company's existing indebtedness for its existing operations,the company may incur further indebtedness during the
course of business. The company cannot's assure that the company would be able to service its existing and/ or additional indebtedness.
- The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Offer.
Further, the company has not identified any alternate source of financing the `Objects of the Offer'. Any shortfall in raising
/ meeting the same could adversely affect its growth plans, operations and financial performance.
- The Company has not paid any dividends in the past and the company may not be able to pay dividends in the future.
- The company has issued equity shares pursuant to bonus in the last 12 months and will be eligible to issue further equity
shares pursuant to a bonus issue only when the company has sufficient reserves. Any future bonus issue may dilute the
value of the equity shares and affect investor holdings.
- The deployment of funds is entirely at the company's discretion and as per the details mentioned in the chapter titled "Objects
of the Offer".
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The IPO opens on 06 Mar 2026 & closes on 10 Mar 2026.
The genesis of Company's construction business traces back to year 2001 when Mr. Srinibas Pradhan, the Founder Promoter of the Company, embarked on a journey in the construction industry by establishing his proprietorship firm under the name 'M/s Srinibas Pradhan'. Initially catering to small-scale construction services within the local jurisdiction of Urban Local Bodies and Block Development Department, Mr. Srinibas Pradhan's unwavering determination and diligent efforts propelled the firm's growth.
The pivotal transition occurred in 2008 when M/s Srinibas Pradhan officially registered with the Works Department of the Government of Odisha. Subsequently, the proprietorship diversified its portfolio, undertaking various small-scale civil projects encompassing roads, buildings, and bridges. Progressively advancing, the proprietorship extended its capabilities, participating in high-value tenders through e-procurement platforms for diverse entities, including Odisha State Government, State and Central PSUs, and corporate entities.
From period spanning 2011 to 2020, M/s Srinibas Pradhan expanded their construction activities, delving into multi-storied buildings, steel structures, major district roads, high-level bridges, factories, and residential quarters. Recognizing the need for operational refinement, Srinibas Pradhan Constructions Private Limited was established on September 25, 2020 vide certified issued by the Central Registration Centre, which subsequently got converted into a Public Limited Company and the name of the Company was changed to Srinibas Pradhan Constructions Limited on February 09, 2024.
To centralize and consolidate its operations within a cohesive corporate framework, the Company established Srinibas Pradhan Infra Private Limited on January 16, 2024, now operating as a wholly-owned subsidiary of the Company. This new entity assumed the operational responsibilities, assets, and liabilities previously managed by M/s Srinibas Pradhan (Proprietorship Firm), following shareholders' approval held in March, 2024.
At present, the Company specialize in infrastructure development across various domains, mainly on Roads and Highways, including Rural, Major District, and Urban roads. In addition to roads, it focus on construction of High-Level Bridges and Steel Structures, both for bridges and sheds. Their Civil Construction Services encompass a wide spectrum, from Foundations and Superstructures to Multi-Storied Structures, Factories, and Industrial Facilities. They actively engage in competitive bidding processes for diverse projects in Odisha, spanning Roads, Bridges, Irrigation & Canals, Civil, and Industrial construction.
Apart from these, the Company operates in the State of Odisha and holds P.W.D. Contractors Registration Certificate as a B' Class
Contractor, to participate in tenders in the region. Additionally, the wholly-owned subsidiary holds P.W.D. Contractors Registration Certificate as an A' Class Contractor, to participate in higher value tenders.
The Company is planning a Public Issue upto 17,94,000 Equity Shares through Fresh Issue.
Srinibas Pradhan Constructions Ltd IPO will close on 10 Mar 2026.
- Focused on Infrastructure and civil construction.
- Experienced management team.
- Experienced workforce.
- Strong Backward Integrations.
- Strong Order Book from various government agencies, local bodies and private companies.
- Strong execution capabilities with industry experience.
- Strong Order Book from various government agencies, local bodies and private companies, collectively in the Company and its wholly-owned Subsidiary.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Ramakanta Pradhan | 2450500 | 39.86 | 2270500 | 28.88 |
| 2 | Srinibas Pradhan | 2791473 | 45.41 | 2611473 | 33.22 |
| 3 | Jyotshna Pradhan | --- | --- | --- | --- |
- Its business operations are focused primarily in the State of Odisha. The company relies heavily on projects undertaken or awarded within Odisha, by entities such as the local authorities, municipal bodies, and other organizations operating in the state. As a result, its revenue streams are derived entirely from contracts with a limited number of entities, exposing it to risks arising from economic, regulatory, and other changes specific to Odisha. Any adverse changes in central or state government policies could potentially lead to foreclosure, termination, restructuring, or renegotiation of its contracts. Such developments could significantly impact the company business operations and financial results.
- The company depends on certain key customers for its revenues. A decrease in the revenues the company derives from them could materially and adversely affect its business, results of operations, cash flows and financial condition.
- The Company depends on the knowledge and experience of its Promoters, Ramakanta Pradhan and Srinibas Pradhan for its growth. The loss of their services may have a material adverse effect on its business, financial condition and results of operations.
- The company has in past entered into related party transactions and its may continue to do so in the future.
- Its may not maintain profitability in the future.
- The Company has a negative cash flow from its operating and investing activities in past three years, details of which are given below, sustained negative cash flow could impact its growth and business.
- The company may be exposed to liabilities arising from defects during construction, which may adversely affect its business, financial condition, results of operations and prospects.
- Its business is capital intensive because of which the company may experience insufficient cash flows to meet required payments on its debt and working capital requirements, there may be an adverse effect on the results of its operations.
- The company operates in a competitive industry and its failures to successfully compete may adversely affect the company business, financial condition and results of operations, and prospects.
- Increases in the prices of materials & services such as construction materials, fuel, labor, equipment maintenance, and other construction related expenses could have an adverse effect on its business, results of operations and financial condition.
- Obsolescence, destruction, theft, breakdowns of its major plants or equipment or failures to repair or maintain the same may adversely affect its business, cash flows, financial condition and results of operations.
- The company operations could be adversely affected by strikes, work stoppages or increased wage demands by its employees or any other kind of disputes with the company employees and contract labour.
- There have been certain inadvertent inaccuracies, delay and non-compliances with respect to certain regulatory filings and corporate actions taken by the Company. Consequently, its may be subject to regulatory actions and penalties for any past or future non-compliance and its business and financial condition may be adversely affected.
- The company does not own certain premises used by the Company. Disruption of its rights as licensee/ lessee or termination of the agreements with the company licensors/ lessors would adversely impact its manufacturing operations and, consequently, the company business.
- There are pending litigations against the company, its Promoters, the company Directors and its Wholly Owned Subsidiary and any adverse decision in these proceedings may render it/them liable to liabilities/penalties and may adversely affect its business, result of operations and financial conditions.
- Compliance with, and changes in, environmental, health and safety laws and regulations or stringent enforcement of existing environmental, health and safety laws and regulations may result in increased liabilities and increased capital expenditures may adversely affect its cash flows, business results of operations and financial condition.
- The Company has applied for registration of certain trademarks in its name. Until such registrations are granted, its may not be able to prevent unauthorised use of such trademarks by third parties, which may lead to the dilution of its goodwill.
- The company agreements with various banks for financial arrangements contain restrictive covenants for certain activities and if the company is unable to get their approval, it might restrict its scope of activities and impede the company growth plans.
- Its Promoter and a member of the company Promoter Group have extended personal guarantees with respect to loan facilities availed by the Company. Further, its Promoter has provided his property as collateral security for loan facilities availed by the Company. Revocation of any or all of these personal guarantees or withdrawal of such property may adversely affect its business operations and financial condition.
- Its operations are subject to accidents and other risks and could expose it to material liabilities, loss in revenues and increased expenses.
- The company Promoters and members of Promoter Group hold Equity Shares and have interests in its performance in addition to their normal remuneration or benefits and reimbursement of expenses incurred.
- Its inability to procure and/or maintain adequate insurance cover in connection with the company business may adversely affect its operations and profitability.
- The average cost of acquisition of Equity Shares held by its Promoter could be lower than the Issue Price.
- The company has issued the following shares (other than bonus issues) within the last twelve months prior to the date of this Draft Red Herring Prospectus at a price lower than the issue price.
- The company future fund requirements, in the form of further issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.
- In addition to its existing indebtedness for the company existing operations, its may incur further indebtedness during the course of business. The company cannot assure that its would be able to service the company existing and/ or additional indebtedness.
- The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Further, the company has not identified any alternate source of financing the `Objects of the Issue'. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.
- The Company has not paid any dividends in the past and its may not be able to pay dividends in the future.
- The deployment of funds is entirely at its discretion and as per the details mentioned in the chapter titled "Objects of the Issue".
- The company's business operations are focused primarily in the State of Odisha.The company relies heavily on projects undertaken or awarded within Odisha, by entities such as the local authorities, municipal bodies, and other organizations operating in the state. As a result, the company's revenue streams are derived entirely from contracts with a limited number of entities, exposing the company to risks arising from economic, regulatory, and other changes specific to Odisha. Any adverse changes in central or state government policies could potentially lead to foreclosure, termination, restructuring, or renegotiation of the company's contracts. Such developments could significantly impact its business operations and financial results.
- The company depends on certain key customers for the company's revenues. A decrease in the revenues the company derives from them could materially and adversely affect its business, results of operations, cash flows and financial condition.
- As of February 15, 2026, the company's Order Book, on a consolidated basis, was Rs. 18406.95Lakhs Projects included in the company's Order Book may be delayed, modified or cancelled for reasons beyond the company's control, or not fully paid for by the company's clients, which could materially harm its cash flow position, revenues or profits.
- The company has in past entered into related party transactions and the company may continue to do so in the future.
- The company may be exposed to liabilities arising from defects during construction, which may adversely affect its business, financial condition, results of operations and prospects.
- The Company is dependent on few suppliers for purchase. Loss of any of these large suppliers may affect its business operations.
- The Company depends on the knowledge and experience of the company's Promoters, Ramakanta Pradhan and Srinibas Pradhan and other key managerial personnel for its growth. The loss of their services may have a material adverse effect on the company's business, financial condition and results of operations.
- The Company has a negative cash flow from its operating and investing activities in past three years and stub period, details of which are given below, sustained negative cash flow could impact its growth and business.
- The company's business is capital intensive because of which the company may experience insufficient cash flows to meet required payments on the company's debt and working capital requirements, there may be an adverse effect on the results of the company's operations.
- Some of the company's promoter group entities are engaged in the same line of business as that of the company and there can be conflict of interests between the company and promoter group entities
- There have been certain inadvertent inaccuracies, delay and non-compliances with respect to certain regulatory filings and corporate actions taken by the Company. Consequently, the company may be subject to regulatory actions and penalties for any past or future non-compliance and the company's business and financial condition may be adversely affected.
- There are pending litigations against the company, the company's Promoters, the company's Directors and the company's Wholly Owned Subsidiary and any adverse decision in these proceedings may render the company/them liable to liabilities/penalties and may adversely affect its business, result of operations and financial conditions.
- The company operates in a competitive industry and the company's failures to successfully compete may adversely affect its business, financial condition and results of operations, and prospects.
- Increases in Construction and Operating Expenses such as raw materials, machine hire charges, site expenses, fuel, labour, repair & maintenance of machinery could have an adverse effect on the company's business, results of operations and financial condition.
- Obsolescence, destruction, theft, breakdowns of the company's machinery or equipment or failures to repair or maintain the same may adversely affect its business, cash flows, financial condition and results of operations.
- The company's operations could be adversely affected by strikes; work stoppages or increased wage demands by the company's employees or any other kind of disputes with its employees and contract labour.
- The company does not own certain premises used by the Company. Disruption of the company's rights as licensee/ lessee or termination of the agreements with its licensors/ lessors would adversely impact the company's manufacturing operations and, consequently, the company's business.
- There have been certain instances of delays in payment of statutory dues in the past. Any delay in payment of statutory dues in future, may result in the imposition of penalties and in turn may have an adverse effect on the company's business, financial condition, results of operation and cash flows.
- Compliance with, and changes in, environmental, health and safety laws and regulations or stringent enforcement of existing environmental, health and safety laws and regulations may result in increased liabilities and increased capital expenditures may adversely affect its cash flows, business results of operations and financial condition.
- The Company does not have sanction letters of certain secured and unsecured loans availed by the Company and by wholly owned subsidiary.
- The Company has applied for registration of certain trademarks in its name. Until such registrations are granted, the company may not be able to prevent unauthorised use of such trademarks by third parties, which may lead to the dilution of its goodwill.
- The company's agreements with various banks for financial arrangements contain restrictive covenants for certain activities and if the company is unable to get their approval, it might restrict the company's scope of activities and impede its growth plans.
- The company has provided corporate guarantees in relation to a loan obtained by the company's wholly owned Subsidiary and any default by the company's wholly owned Subsidiary may result in invocation of the parent guarantee.
- The company's Promoter and a member of the company's Promoter Group have extended personal guarantees with respect to loan facilities availed by the Company. Further, the company's Promoter has provided his property as collateral security for loan facilities availed by the Company. Revocation of any or all of these personal guarantees or withdrawal of such property may adversely affect its business operations and financial condition.
- The company may be unable to pre-qualify to bid on certain larger construction projects on the company's own, and if the company is unable to forge alliances with third parties, the company may be precluded from bidding for those large construction projects, which could have an adverse effect on the company's growth prospects.
- Any delays in the schedule of implementation of the company's proposed objects could have an adverse impact on the company's business, financial condition and results of operations.
- The company's operations are subject to accidents and other risks and could expose the company to material liabilities, loss in revenues and increased expenses.
- The company's contingent liabilities could materially and adversely affect its business, results of operations and financial condition.
- The company's Promoters and members of Promoter Group hold Equity Shares and have interests in the company's performance in addition to their normal remuneration or benefits and reimbursement of expenses incurred.
- The company's inability to procure and/or maintain adequate insurance cover in connection with the company's business may adversely affect its operations and profitability.
- The company requires working capital for its smooth day-to-day operations of business and any discontinuance or the company's inability to acquire adequate working capital timely and on favourable terms may have an adverse effect on the company's operations, profitability and growth prospects.
- Potential Legal and Accounting Risks Due to Loans Remaining in the Name of Promoter Post Business Transfer.
- Unsecured loans taken by the Company can be recalled at any time.
- After the completion of the Issue, the company's Promoters will continue to collectively hold substantial shareholding in the Company.
- The company's operations may include activities that could be harmful to the health of labour/worker and other risks which could expose the company to material liabilities and increased expenses and negatively impact employee morale.
- The directors of the company don't have the experience of the listed company and the requirements of being a listed company may strain its resources.
- The company has a large work force and the company's employee benefits expense is one of the components of its fixed operating costs. An increase in employee benefits expense could reduce the company's profitability. Further, the company's operations could be adversely affected by work stoppages, shortage of labour, or increased wage demands by the company's employees or any other kind of disputes with its employees.
- The company has obtained various approvals, licenses, registration and permits for the company's business and failures to renew them in a timely manner may adversely affect its operations.
- The average cost of acquisition of Equity Shares held by the company's Promoter could be lower than the Offer Price.
- The company's future fund requirements, in the form of further issue of capital or securities and/or loans taken by the company, may be prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.
- In addition to the company's existing indebtedness for its existing operations,the company may incur further indebtedness during the course of business. The company cannot's assure that the company would be able to service its existing and/ or additional indebtedness.
- The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Offer. Further, the company has not identified any alternate source of financing the `Objects of the Offer'. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.
- The Company has not paid any dividends in the past and the company may not be able to pay dividends in the future.
- The company has issued equity shares pursuant to bonus in the last 12 months and will be eligible to issue further equity shares pursuant to a bonus issue only when the company has sufficient reserves. Any future bonus issue may dilute the value of the equity shares and affect investor holdings.
- The deployment of funds is entirely at the company's discretion and as per the details mentioned in the chapter titled "Objects of the Offer".
The Issue type of Srinibas Pradhan Constructions Ltd is Book Building - SME.
The minimum application for shares of Srinibas Pradhan Constructions Ltd is 2400.
The total shares issue of Srinibas Pradhan Constructions Ltd is 2073600.
Initial public offer of 20,73,600 equity shares of face value of Rs.10/- each (the "Equity shares") of Srinibas Pradhan Constructions Limited ("SPCL" or the "Company" or the "Issuer") at an offer price of Rs. 98 per equity share for cash, aggregating up to Rs. 20.32 Crores ("Public Offer") comprising of a fresh issue of 17,13,600 equity shares aggregating to Rs.16.79 Crores(the "Fresh Issue") and an offer for sale of 3,60,000 equity shares by the selling shareholders ("Offer For Sale") aggregating to Rs. 3.53 Crores comprising; 1,80,000 equity shares aggregating up to Rs. 1.76 Crores by Ramakanta Pradhan and 1,80,000 equity shares aggregating up to Rs.1.76 Crores by Srinibas Pradhan (Collectively Refferd as "Selling Shareholders") out of which 1,04,400 equity shares of face value of Rs. 10/- each, at an offer price of Rs. 98 per equity share for cash, aggregating Rs. 1.02 Crores will be reserved for subscription by the market maker to the offer (the "Market Maker Reservation Portion"). The public offer less market maker reservation portion i.e. Offer of 19,69,200 equity shares of face value of Rs. 10/- each, at an offer price of Rs.98 per equity share for cash, aggregating up to Rs. 19.30 Crores is herein after referred to as the "Net Offer". The public offer and net offer will constitute 26.38% and 25.05% respectively of the post- offer paid-up equity share capital of the company.
Price Band: Rs. 98/- for equity share of face value of Rs. 10 each.
The floor price is 9.8 times of the face value of the equity shares.
Bids can made for a minimum of 2400 equity shares and in multiples of 1200 equity shares thereafter.