APR Constructions Limited - Saffron Capital

• Significant development in India‟s fiscal and environmental regulations.
There can be no assurance that an active trading market for our Company‟s Equity Shares will develop or be
sustained after this Issue or the price at which our Equity Shares are initially traded will correspond to the prices at
which our Equity Shares will trade in the market subsequent to this Issue.
49. The Issue Price of our Equity Shares may not be indicative of the market price of our Equity Shares after the
Issue.
The Book Building Process will determine the Issue Price of our Equity Shares. This price will be based on numerous
factors (discussed in the section “Basis for Issue Price” beginning on page 65 of this Draft Red Herring Prospectus)
and may not be indicative of the market price for our Equity Shares after the Issue. The market price of our Equity
Shares could be subject to significant fluctuations after the Issue, and may decline below the Issue Price. There is no
assurance that you will be able to resell your Equity Shares at or above the Issue Price. Among the factors that could
affect our Equity Share price are:
• Quarterly and other periodical variations in the rate of growth of our financial indicators, such as earnings per
share, net income and revenues;
• Changes in revenue or earnings estimates or publication of research reports by analysts;
• Speculation in the press or investment community;
• General market conditions; and
• Domestic and international economic, legal and regulatory factors unrelated to our performance.
Notes to Risk Factors:
1. Public Issue of [●] Equity Shares for cash at a price of ` [●] per Equity Share (including a share premium of
` [●] per Equity Share), aggregating `10,400.00 lakhs. The Face Value of the Equity Shares is `10/- and the
Issue Price is [●] times the Face Value. The Issue will constitute [●] %, of the post -Issue paid-up Equity
Share capital of our Company.
2. The Net worth of our Company as on March 31, 2010 and for the eight months period ended November 30,
2010 is `6379.85 lakhs and `7262.45 lakhs respectively as per the certificate dated March 01, 2011 issued by
our Statutory Auditor.
3. The average cost of acquisition of Equity Shares by each of our Promoters is as under: -
Name of our Promoters No. of Shares held Average Cost per Share (`)
Mr. Adala Prabhakara Reddy 1,23,75,000 4.44
Mrs. Adala Vindhyavali 18,64,440 4.55
Mr. Pulagam Harikrishna 11,250 4.44
4. The Book Value per Equity Share of our Company as on March 31, 2010 and as on November 30, is `34.99
and `39.83 respectively, as per the restated financial statement issued by our Statutory Auditor.
5. For details of related party transactions entered into by our Company, please see the section titled “Statement
of Related Party Disclosures” appearing as Annexure XII of the section titled “Financial Statements”
beginning on page 148 of the Draft Red Herring Prospectus. The following table lists the absolute value of
all transactions entered into with our related party entities as per our Restated Standalone Summary
Statements for the years ended March 31, 2006, 2007, 2008, 2009 and 2010 and for the eight months period
ended November 30, 2010:
(` in Lakhs)
Sr.
Particulars As at As at 31 st March
No
30-11-2010 2010 2009 2008 2007 2006
1. Managerial Remuneration 48.00 53.40 34.80 19.40 18.00 12.90
2. Share of Profit in Joint Ventures 19.14 31.09 24.99 12.22 0.00 0.00
3. Transactions with Associated 286.35 351.55 1447.31 1485.95 0.00 0.00
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