The issue is entirely an offer for sale. At the upper end of the price band, the company seeks a market-cap of Rs 8,100 crore.
“Adjusting this for Rs 2,500 crore equity to be invested in HAM projects (valued at a conservative 0.7 times P/BV) – it seeks a valuation of Rs 6,400 crore for its EPC business, which translates into 7 times FY23 P/E, assuming 15 per cent revenue CAGR and 18 per cent Ebitda margins over FY22-23. This is in line with most peers, which are all trading at significant discounts to their historical average (15x) due to the ongoing pandemic,” said Phillip Capital.
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