Manav Infra Projects Limited
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DRAFT PROSPECTUS 100% Fixed Price Issue Please read Section 26 and 32 of the Companies Act, 2013 Dated 14th July, 2017 MANAV INFRA PROJECTS LIMITED (CIN- U45200MH2009PLC193084) Our Company was originally incorporated at Mumbai as “Manav Infra Projects Private Limited” on 8th June, 2009 under the provisions of the Companies Act, 1956 vide Certificate of Incorporation issued by the Registrar of Companies, Mumbai, Maharashtra. Subsequently, our Company was converted into a public limited company vide a Fresh Certificate of Incorporation dated 2nd February, 2017 was issued by the Registrar of Companies, Mumbai, Maharashtra. For further details of incorporation, change of name and registered office of our Company, please refer to chapter titled “General Information” and “Our History and Corporate Structure” beginning on pages 45 and 114 respectively of this Draft Prospectus. Registered Office: 308, 3rd Floor, Blue Rose Industrial Premises Co-Op Society, Western Express Highway, Borivali East, Mumbai-400 066, Maharashtra, India Tel: +91-22-2854 0694 Email: [email protected], Website: www.manavinfra.com Company Secretary & Compliance Officer: Ms. PriyankaAgarwal PROMOTER OF OUR COMPANY: MR. MAHENDRA NARAYAN RAJU THE ISSUE PUBLIC ISSUE OF 18,36,000 EQUITY SHARES OF FACE VALUE OF RS. 10 EACH (”EQUITY SHARES”) OF MANAV INFRA PROJECTS LIMITED (THE “COMPANY” OR THE “ISSUER”) FOR CASH AT A PRICE OF RS. 30 PER EQUITY SHARE, INCLUDING A SHARE PREMIUM OF RS. 20 PER EQUITY SHARE (THE “ISSUE PRICE”), AGGREGATING TO RS. 550.80 LAKHS (“THE ISSUE”), OF WHICH 92,000 EQUITY SHARES OF FACE VALUE OF RS. 10 EACH FOR CASH AT A PRICE OF RS. 30 PER EQUITY SHARE, AGGREGATING RS. 27.60 LAKHS WILL BE RESERVED FOR SUBSCRIPTIONS BY THE MARKET MAKER TO THE ISSUE (THE “MARKET MAKER RESERVATION PORTION”). THE ISSUE LESS MARKET MAKER RESERVATION PORTION I.E. ISSUE OF 17,44,000 EQUITY SHARES OF FACE VALUE OF RS. 10 EACH CASH AT A PRICE OF RS. 30 PER EQUITY SHARE, AGGREGATING RS. 523.20 LAKHS IS HEREINAFTER REFERRED TO AS THE “NET ISSUE”. THE ISSUE AND THE NET ISSUE WILL CONSTITUTE 26.86% AND 25.51% RESPECTIVELY OF THE POST ISSUE PAID UP EQUITY SHARE CAPITAL OF THE COMPANY. THE FACE VALUE OF THE EQUITY SHARES IS RS. 10 EACH AND THE ISSUE PRICE OF RS. 30/- I.E. 3.00 TIMES OF THE FACE VALUE OF THE EQUITY SHARES. In terms of SEBI Circular No. CIR/CFD/POLICYCELL/11/2015, all potential investors shall participate in the Issue only through an Application Supported by Blocked Amount (“ASBA”) process providing details about the bank account which will be blocked by the Self Certified Syndicate Banks (“SCSBs”) for the same. For details in this regard, specific attention is invited to the chapter titled “Issue Procedure” beginning on page 196 of this Draft Prospectus. A copy will be delivered for registration to the Registrar of companies as required under Section 26 of the Companies Act, 2013. All potential investors may participate in the Issue through an Application Supported by Blocked Amount (“ASBA”) process providing details about the bank account which will be blocked by the Self Certified Syndicate Banks (“SCSBs”) for the same. For details in this regard, specific attention is invited to the chapter titled "Issue Procedure" beginning on page 196 of this Draft Prospectus. In case of delay, if any in refund, our Company shall pay interest on the application money at the rate of 15% per annum for the period of delay. Qualified Institutional Buyers and Non-Institutional Investors shall compulsorily participate in the Issue through ASBA process. A Copy will be delivered for registration to the Registrar as required under Section 26 of the Companies Act, 2013. THE ISSUE IS BEING MADE IN ACCORDANCE WITH CHAPTER XB OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENT) REGULATIONS, 2009 AS AMENDED FROM TIME TO TIME. For further details please refer to Section titled “Issue Structure” beginning on Page 193 of this Draft Prospectus. RISK IN RELATION TO THE FIRST ISSUE This being the first public issue of our Company, there has been no formal market for our Equity Shares of the Company. The face value of the Equity Shares is Rs. 10 and the issue price of Rs. 30 per Equity Share is 3.00 times of face value. The issue price (as determined by our Company in consultation with the Lead Manager and as stated in the chapter titled on “Basis for Issue Price” beginning on page 70 of this Draft Prospectus) should not be taken to be indicative of the market price of the Equity Shares after the Equity Shares are listed. No assurance can be given regarding an active and/or sustained trading in the Equity Shares of the Company or regarding the price at which the equity shares will be traded after listing. GENERAL RISKS Investments in equity and equity-related securities involve a degree of risk and investors should not invest any funds in this Issue unless they can afford to take the risk of losing their investment. Investors are advised to read the risk factors carefully before taking an investment decision in this Issue. For taking an investment decision, investors must rely on their own examination of our Company and the Issue including the risks involved. The Equity Shares offered in the Issue have not been recommended or approved by the Securities and Exchange Board of India (“SEBI”), nor does SEBI guarantee the accuracy or adequacy of this Draft Prospectus. Specific attention of the investors is invited to the section titled “Risk Factors” beginning on page 14 of this Draft Prospectus. Issuer’s ABSOLUTE RESPONSIBILITY The Company having made all reasonable inquiries, accepts responsibility for and confirms that this Draft Prospectus contains all information with regard to our Company and the Issue, which is material in the context of the Issue, that the information contained in this Draft Prospectus is true and correct in all material aspects and is not misleading in any material respect, that the opinions and intentions expressed herein are honestly held and that there are no other facts, the omission of which makes this Draft Prospectus as a whole or any of such information or the expression of any such opinions or intentions misleading in any material respect. LISTING The Equity Shares of our Company offered through this Draft Prospectus are proposed to be listed on the SME Platform of National Stock Exchange of India Limited (“NSE EMERGE”).Our Company has received an In-Principle approval letter dated [] from NSE for using its name in this offer document for listing of our shares on the NSE EMERGE. For the purpose of this Issue, the designated Stock Exchange will be the National Stock Exchange of India Limited (“NSE”). LEAD MANAGER TO THE ISSUE REGISTRAR TO THE ISSUE TM NAVIGANT CORPORATE ADVISORS LIMITED KARVY COMPUTERSHARE PRIVATE LIMITED 423, A Wing, Bonanza, Sahar Plaza Complex, Karvy Selenium Tower B, Plot 31-32, Gachibowli, J B Nagar, Andheri Kurla Road, Andheri East, Mumbai-400 059 Financial District, Nanakramguda, Hyderabad 500 032 Tel No. +91-22-6560 5550, Email Id- [email protected] Tel : +91 40 6716 2222 Fax : + 91 40 2343 1551 Investor Grievance Email: [email protected] Website: www.karisma.karvy.com Email: [email protected] Website: www.navigantcorp.com Contact Person : Mr. M Murali Krishna SEBI Registration Number: INM000012243 SEBI Registration : INR000000221 Contact Person: Mr. Sarthak Vijlani ISSUE PROGRAMME ISSUE OPENS ON: [] ISSUE CLOSES ON: [] Manav Infra Projects Limited TABLE OF CONTENTS SECTION TITLE PAGE NO I GENERAL DEFINITIONS AND ABBREVIATIONS 2 PRESENTATION OF FINANCIAL, INDUSTRY AND MARKET DATA 11 FORWARD LOOKING STATEMENTS 13 II RISK FACTORS 14 III INTRODUCTION SUMMARY OF INDUSTRY OVERVIEW 27 SUMMARY OF BUSINESS 30 SUMMARY OF FINANCIAL INFORMATION 33 ISSUE DETAILS IN BRIEF 36 GENERAL INFORMATION 37 CAPITAL STRUCTURE 45 OBJECTS OF THE ISSUE 64 BASIS FOR ISSUE PRICE 70 STATEMENT OF TAX BENEFITS 73 IV ABOUT OUR COMPANY INDUSTRY OVERVIEW 75 OUR BUSINESS 87 KEY INDUSTRY REGULATIONS AND POLICIES 107 OUR HISTORY AND CORPORATE STRUCTURE 114 OUR MANAGEMENT 117 OUR PROMOTERS 129 OUR PROMOTER GROUP / GROUP COMPANIES / ENTITIES 131 RELATED PARTY TRANSACTIONS 134 DIVIDEND POLICY 135 V FINANCIAL INFORMATION FINANCIAL INFORMATION OF OUR COMPANY 136 MANAGEMENT DISCUSSION & ANALYSIS OF FINANCIAL CONDITION AND RESULTS 154 OF OPERATIONS VI LEGAL AND OTHER INFORMATION OUTSTANDING LITIGATION AND MATERIAL DEVELOPMENTS 168 GOVERNMENT & OTHER APPROVALS 173 OTHER REGULATORY AND STATUTORY DISCLOSURES 175 VII ISSUE RELATED INFORMATION TERMS OF THE ISSUE 187 ISSUE STRUCTURE 193 ISSUE PROCEDURE 196 VIII MAIN PROVISIONS OF THE ARTICLES OF ASSOCIATION 238 IX OTHER INFORMATION LIST OF MATERIAL CONTRACTS AND DOCUMENTS FOR INSPECTION 253 DECLARATION 255 Manav Infra Projects Limited The Equity Shares have not been and will not be registered under the U.S Securities Act of 1933, as amended ("U.S. Securities Act") or any state securities laws in the United States and may not be offered or sold within the United States or to, or for the account or benefit of, "U.S. Persons" (as defined in Regulation S), except pursuant to exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities laws. Accordingly, the Equity Shares are being offered and sold only outside the United States in offshore transaction in reliance on Regulation S under the U.S. Securities Act and the applicable laws of the jurisdiction where those offers and sale occur. The Equity Shares have not been and will not be registered, listed or otherwise qualified in any other jurisdiction outside India and may not be offered or sold, and application may not be made by persons in any such jurisdiction, except in compliance with the applicable laws of such jurisdiction.