APR Constructions Limited - Saffron Capital

BASIS FOR ISSUE PRICE
Investors should read the following summary along with the Sections titled “Risk Factors”, “About Our Company”
and “Financial Information” beginning on pages 13, 76 & 148 respectively of the Draft Red Herring Prospectus. The
trading price of the Equity Shares of our Company could decline due to these risks and you may lose all or part of
your investments.
The Issue Price will be determined by our Company in consultation with the BRLMs on the basis of assessment of
market demand for the Equity Shares offered by way of book building.
Qualitative Factors
For qualitative factors, please refer to our “Our Business - Competitive Strengths” on page 95 of this Draft Red
Herring Prospectus.
Quantitative Factors
The information presented below is based on the restated financial statements prepared in accordance with Indian
GAAP. Some of the quantitative factors, which form the basis for computing the price, are as follows:
1. Adjusted Earnings Per Share
Particulars EPS (`) Weights
2007-2008 5.63 1
2008-2009 5.79 2
2009-2010 8.32 3
Weighted Average EPS 7.03
2. Price/Earning Ratio (P/E) in relation to Issue Price of ` [●] per share
Particulars
P/E at the lower end
of the price band (`
[●])
P/E at the higher
end of the price (`
[●])
a. Based on 2009-10 EPS of `8.32 [●] [●]
b. Based on weighted average EPS of `7.03 [●] [●]
Industry P/E*
• Highest – Shristi Infrastructure Development Corporation Limited 161.3
• Lowest – Simplex Projects Limited 3.8
• Average – (Construction) 15.4
Source: Capital Market, Volume XXVI/01, March 07 – March 20, 2011
3. Return on Net Worth
Particulars RONW (%) Weights
2007-2008 26.94 1
2008-2009 21.71 2
2009-2010 23.79 3
Weighted Average RONW 23.62
4. Minimum Return on Net Worth needed after the Issue to maintain pre-Issue EPS of ` 8.32 is
a) At the higher end of the price band [●] %
b) At the lower end of the price band [●] %
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