Construction Company Raising Funds In Visakhapatnam
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The business model involves purchasing housing sites and constructing middle-class homes. The promoter will contribute ₹2.5 crores in the form of construction equipment, tools, and resources, while the remaining ₹9 crores will be raised from investors.
Post-investment, the ownership structure will allocate 60% to investors and 40% to the promoter, which includes 20% as sweat equity and 20% as an investment component.
Clientele type
HPCL, Adani, KEC, JINDAL, and other private building owners are the primary clients.
Premises
The premises will be owned by the business.
Asking Price Includes
Proposal: Existing Company Expansion
The company’s current turnover was Rs 3.52 Crores (excluding GST) last year, with a profit of Rs 18 Lacs. However, this year the turnover has been reduced to Rs 1.8 Crores due to working capital constraints.
Post-funding, the expected turnover is Rs 4.5 Crores for the next year, with an annual growth rate projected at 20%. The expected net profit for the first year post-funding is Rs 50 Lacs.
The company requires Rs 3 Crores for working capital and is offering a 30% equity stake in return. This implies a valuation of Rs 10 Crores based on the equity offered for the funding amount.
Asking Price
INR 3.00 Cr
Minimum ticket size
INR 1.50 Cr
Reason
The founder is looking to raise funds for the expansion of the business and is seeking long term investor.
Other Details
About the company:
With 37 years of industry experience, the construction company stands as a prominent civil engineering firm in Visakhapatnam. It is powered by a dedicated team of skilled professionals who excel in residential and industrial infrastructure projects. Each undertaking, regardless of size, is handled with the utmost care and commitment, leading to a track record of remarkable accomplishments.
The company is making strides in diverse areas such as civil and structural works, interior design, modular kitchens, exterior projects, and renovations for both residential and commercial properties.
At the heart of its operations lies a steadfast commitment to quality, safety, timely execution, and client satisfaction. By utilizing its expertise, the company delivers innovative solutions that create a meaningful and enduring impact. Integrity is the cornerstone of its values and practices.
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₹10 to ₹200 Cr
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