RED HERRING PROSPECTUSDated July 21, 2016

Please read Section 32 of the Companies Act, 2013Book Built Issue

DIlIP BUIlDCON lImITED INFRASTRUCTURE & BEYOND

Our Company was incorporated as Dilip Buildcon Private Limited on June 12, 2006 as a private limited company under the Companies Act, 1956, with the Registrar of Companies, Madhya Pradesh at Gwalior (the “RoC”). Our Company was converted into a public limited company and consequently, the name of our Company was changed to Dilip Buildcon Limited and a fresh certificate of incorporation was issued by the RoC on August 26, 2010. For further details of change in the name and registered office of our Company, please see the section entitled “History and Certain Corporate Matters” on page 179.

Registered and Corporate Office: Plot No. 5, Inside Govind Narayan Singh Gate, Chuna Bhatti, Kolar Road, Bhopal 462 016, Madhya Pradesh Contact Person: Abhishek Shrivastava, Company Secretary and Compliance Officer; Tel: +91 755 4029999; Fax: +91 755 4029998

E-mail: csabhishek@dilipbuildcon.co.in; Website: www.dilipbuildcon.co.in Corporate Identity Number: U45201MP2006PLC018689

OUR PROMOTERS: DILIP SURYAVANSHI, SEEMA SURYAVANSHI, DEVENDRA JAIN AND SURYAVANSHI FAMILY TRUST

PUBLIC ISSUE OF UP TO [●] EQUITY SHARES OF FACE VALUE OF ` 10 EACH (THE “EQUITY SHARES”) OF DILIP BUILDCON LIMITED (“OUR COMPANY” OR THE “ISSUER”) FOR CASH AT A PRICE OF ` [●] PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF ` [●] PER EQUITY SHARE) AGGREGATING UP TO ` [●] MILLION (THE “ISSUE”) COMPRISING A FRESH ISSUE OF UP TO [●] EQUITY SHARES AGGREGATING UP TO ` 4,300 MILLION (THE “FRESH ISSUE”) AND AN OFFER FOR SALE OF UP TO 1,136,364 EQUITY SHARES BY DILIP SURYAVANSHI, UP TO 1,136,364 EQUITY SHARES BY DEVENDRA JAIN (DILIP SURYAVANSHI AND DEVENDRA JAIN, COLLECTIVELY REFERRED TO AS THE “PROMOTER SELLING SHAREHOLDERS”) AND UP TO 7,954,545 EQUITY SHARES BY BANYANTREE GROWTH CAPITAL, LLC (THE “INVESTOR SELLING SHAREHOLDER”) (THE PROMOTER SELLING SHAREHOLDERS AND THE INVESTOR SELLING SHAREHOLDER COLLECTIVELY, THE “SELLING SHAREHOLDERS”) AGGREGATING UP TO ` [●] MILLION (THE “OFFER FOR SALE” AND TOGETHER WITH THE FRESH ISSUE, THE “ISSUE”). THE ISSUE WILL CONSTITUTE [●] % OF OUR POST-ISSUE PAID-UP EQUITY SHARE CAPITAL.

THE FACE VALUE OF THE EQUITY SHARES IS ` 10 EACH. OUR COMPANY AND THE SELLING SHAREHOLDERS MAY, IN CONSULTATION WITH THE BOOK RUNNING LEAD MANAGERS, OFFER A DISCOUNT OF UP TO [●]% (EQUIVALENT TO ` [●]) ON THE ISSUE PRICE TO RETAIL INDIVIDUAL BIDDERS (“RETAIL DISCOUNT”). THE PRICE BAND, THE RETAIL DISCOUNT AND THE MINIMUM BID LOT WILL BE DECIDED BY OUR COMPANY AND THE SELLING SHAREHOLDERS IN CONSULTATION WITH THE BOOK RUNNING LEAD MANAGERS (“BRLMS”) AND WILL BE ADVERTISED IN ALL EDITIONS OF BUSINESS STANDARD (A WIDELY CIRCULATED ENGLISH NATIONAL DAILY NEWSPAPER) AND ALL EDITIONS OF BUSINESS STANDARD (A WIDELY CIRCULATED HINDI NATIONAL DAILY NEWSPAPER WITH WIDE CIRCULATION IN MADHYA PRADESH) AT LEAST FIVE WORKING DAYS PRIOR TO THE BID/ISSUE OPENING DATE.In case of any revision to the Price Band, the Bid/Issue Period will be extended by three additional Working Days after such revision of the Price Band, subject to the total Bid/Issue Period not exceeding 10 Working Days. Any revision in the Price Band and the revised Bid/Issue Period, if applicable, will be widely disseminated by notification to the BSE Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE”), by issuing a press release, and also by indicating the change on the website of the BRLMs and at the terminals of the other members of the Syndicate.In terms of Rule 19(2)(b)(ii) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”), this is an Issue for at least such percentage of the post-Issue Equity Share capital of our Company that will be equivalent to ` 4,000 million calculated at the Issue Price. The Issue is being made through the Book Building Process in accordance with Regulation 26(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 (“SEBI Regulations”) wherein not more than 50% of the Issue shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (the “QIB Portion”), provided that our Company and the Selling Shareholders, in consultation with the BRLMs, may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis. One-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. 5% of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Issue Price. Further, not less than 15% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Issue shall be available for allocation to Retail Individual Bidders in accordance with the SEBI Regulations, subject to valid Bids being received at or above the Issue Price. All potential Bidders, other than Anchor Investors, are required mandatorily to utilise the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective bank accounts which will be blocked by the Self Certified Syndicate Banks (“SCSBs”) to participate in the Issue. For details, please see the section entitled “Issue Procedure” on page 454.

RISK IN RELATION TO THE FIRST ISSUE

This being the first public issue of our Company, there has been no formal market for the Equity Shares of our Company. The face value of the Equity Shares is `10 and the Floor Price is [●] times the face value and the Cap Price is [●] times the face value. The Issue Price (determined and justified by our Company in consultation with the Selling Shareholders and the BRLMs as stated under the section entitled “Basis for Issue Price” on page 105) 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 or sustained trading in the Equity Shares or regarding the price at which the Equity Shares will be traded after listing.

GENERAL RISKSInvestments in equity and equity-related securities involve a degree of risk and investors should not invest any funds in the Issue unless they can afford to take the risk of losing their entire investment. Investors are advised to read the risk factors carefully before taking an investment decision in the 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 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 the contents of the Red Herring Prospectus. Specific attention of the investors is invited to the section entitled “Risk Factors” on page 15.

ISSUER’S AND SELLING SHAREHOLDERS’ ABSOLUTE RESPONSIBILITYOur Company, having made all reasonable inquiries, accepts responsibility for and confirms that this Red Herring 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 Red Herring 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 Red Herring Prospectus as a whole or any of such information or the expression of any such opinions or intentions misleading in any material respect. Further, each of the Promoter Selling Shareholders severally accept responsibility that this Red Herring Prospectus contains all information about him as a Selling Shareholder in the context of the Offer for Sale and further assumes responsibility for statements in relation to him included in this Red Herring Prospectus. The Investor Selling Shareholder accepts responsibility only for statements specifically made by the Investor Selling Shareholder in this Red Herring Prospectus with respect to itself and the Equity Shares offered by it in the Offer for Sale, and that such statements are true, complete and correct in all material respects and are not misleading in any material respect.

lISTINGThe Equity Shares offered through this Red Herring Prospectus are proposed to be listed on the BSE and the NSE. Our Company has received an ‘in-principle’ approval from the BSE and the NSE for the listing of the Equity Shares pursuant to letters dated February 16, 2016 and February 15, 2016, respectively. For the purposes of the Issue, BSE will be the Designated Stock Exchange. A copy of this Red Herring Prospectus has been delivered to the RoC and a copy of the Prospectus shall be delivered for registration to the RoC in accordance with Section 26(4) of the Companies Act, 2013. For details of the material contracts and documents available for inspection from the date of this Red Herring Prospectus up to the Bid/Issue Closing Date, please see the section entitled “Material Contracts and Documents for Inspection” on page 509.

BOOK RUNNING LEAD MANAGERS REGISTRAR TO THE ISSUE

Axis Capital LimitedAxis House, 1st Floor, C-2, Wadia International Center, P. B. Marg, Worli Mumbai 400 025, Maharashtra Tel: +91 22 4325 1199 Fax: +91 22 4325 3000 E-mail: dbl.ipo@axiscap.in Investor grievance e-mail: complaints@axiscap.in Website: www.axiscapital.co.in Contact Person: Akash Aggarwal SEBI Registration No.: INM000012029

IIFl Holdings limited10th Floor, IIFL Centre Kamala City, Senapati Bapat Marg, Lower Parel (West), Mumbai 400 013 Maharashtra, India Tel: +91 22 4646 4600 Fax: +91 22 2493 1073 E-mail: dbl.ipo@iiflcap.com Investor grievance E-mail: ig.ib@iiflcap.com Website: www.iiflcap.com Contact Person: Gururaj Sundaram/ Kunur Bavishi SEBI Registration No.: INM000010940

JM Financial Institutional Securities limited* 7th Floor, Cnergy, Appasaheb Marathe Marg, Prabhadevi, Mumbai 400 025 Maharashtra Tel: +91 22 6630 3030 Fax: +91 22 6630 3330 E-mail: dbl.ipo@jmfl.com Investor Grievance E-mail: grievance.ibd@jmfl.com Website: www.jmfl.com Contact Person: Lakshmi Lakshmanan SEBI Registration No.: INM000010361* Formerly JM Financial Institutional Securities Private Limited

PNB Investment Services Limited PNB Pragati Towers, 2nd Floor, C-9, G-Block, Bandra Kurla Complex, Bandra (East), Mumbai 400 051 Maharashtra Tel: +91 22 2653 2745 Fax: +91 22 2653 2687 E-mail: dbl.ipo@pnbisl.com Investor grievance e-mail: complaints@pnbisl.com Website: www.pnbisl.com Contact Person: Vinay N. Rane SEBI Registration No.: INM000011617

link Intime India Private limited C-13, Pannalal Silk Mills Compound, L.B.S. Marg, Bhandup (West) Mumbai 400 078, Maharashtra Tel: +91 22 6171 5400 Fax: +91 22 2596 0329 E-mail: dbl.ipo@linkintime.co.in Investor Grievance e-mail: dbl.ipo@linkintime.co.in Website: www.linkintime.co.in Contact Person: Shanti Gopalkrishnan SEBI Registration No.: INR000004058

BID/ISSUE PROGRAMMEBID/ISSUE OPENS ON AUGUST 1, 2016, MONDAY (1)

BID/ISSUE ClOSES ON AUGUST 3, 2016, WEDNESDAY(1)Our Company and the Selling Shareholders shall, in consultation with the BRLMs, consider participation by Anchor Investors in accordance with the SEBI Regulations. The Anchor Investor Bid/Issue Period shall be one Working Day prior to the Bid/Issue Opening Date.

mailto:lavasa.ipo@axiscap.inmailto:dbl.ipo@linkintime.co.in

TABLE OF CONTENTS

SECTION I: GENERAL ...................................................................................................................................... 1

DEFINITIONS AND ABBREVIATIONS ........................................................................................................ 1 PRESENTATION OF FINANCIAL, INDUSTRY AND MARKET DATA ................................................... 12 FORWARD-LOOKING STATEMENTS ....................................................................................................... 14

SECTION II: RISK FACTORS ........................................................................................................................ 15

SECTION III: INTRODUCTION .................................................................................................................... 55

SUMMARY OF INDUSTRY .......................................................................................................................... 55 SUMMARY OF OUR BUSINESS .................................................................................................................. 59 SUMMARY OF FINANCIAL INFORMATION ............................................................................................ 67 THE ISSUE ...................................................................................................................................................... 74 GENERAL INFORMATION .......................................................................................................................... 76 CAPITAL STRUCTURE ................................................................................................................................ 86 OBJECTS OF THE ISSUE .............................................................................................................................. 97 BASIS FOR ISSUE PRICE ........................................................................................................................... 105 STATEMENT OF TAX BENEFITS ............................................................................................................. 109

SECTION IV: ABOUT OUR COMPANY ..................................................................................................... 123

INDUSTRY OVERVIEW ............................................................................................................................. 123 OUR BUSINESS ........................................................................................................................................... 143 REGULATIONS AND POLICIES ................................................................................................................ 175 HISTORY AND CERTAIN CORPORATE MATTERS ............................................................................... 179 OUR SUBSIDIARIES ................................................................................................................................... 184 OUR MANAGEMENT ................................................................................................................................. 196 OUR PROMOTERS AND PROMOTER GROUP ........................................................................................ 215 OUR GROUP COMPANIES ......................................................................................................................... 220 RELATED PARTY TRANSACTIONS ........................................................................................................ 226 DIVIDEND POLICY ..................................................................................................................................... 227

SECTION V: FINANCIAL INFORMATION ............................................................................................... 228

FINANCIAL STATEMENTS ....................................................................................................................... 228 FINANCIAL INDEBTEDNESS ................................................................................................................... 351 MANAGEMENT‘S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS .............................................................................................................................................. 384 SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN INDIAN GAAP AND IND AS ................... 405

SECTION VI: LEGAL AND OTHER INFORMATION ............................................................................. 409

OUTSTANDING LITIGATIONS AND MATERIAL DEVELOPMENTS .................................................. 409 GOVERNMENT AND OTHER APPROVALS ............................................................................................ 429 OTHER REGULATORY AND STATUTORY DISCLOSURES ................................................................. 431

SECTION VII: ISSUE INFORMATION ....................................................................................................... 446

TERMS OF THE ISSUE ................................................................................................................................ 446 ISSUE STRUCTURE .................................................................................................................................... 451 ISSUE PROCEDURE .................................................................................................................................... 454 RESTRICTIONS ON FOREIGN OWNERSHIP OF INDIAN SECURITIES ............................................... 497

SECTION VIII: MAIN PROVISIONS OF ARTICLES OF ASSOCIATION............................................ 498

PART A OF THE ARTICLES OF ASSOCIATION ..................................................................................... 498 PART B OF THE ARTICLES OF ASSOCIATION ..................................................................................... 505

SECTION IX: OTHER INFORMATION ..................................................................................................... 509

MATERIAL CONTRACTS AND DOCUMENTS FOR INSPECTION ....................................................... 509 DECLARATION ........................................................................................................................................... 511

SECTION I: GENERAL

DEFINITIONS AND ABBREVIATIONS

This Red Herring Prospectus uses certain definitions and abbreviations which, unless the context otherwise

indicates or implies, shall have the meaning as provided below. References to any legislation, act, regulation,

rule, guideline or policy shall be to such legislation, act, regulation, rule, guideline or policy, as amended,

supplemented or re-enacted from time to time.

The words and expressions used in this Red Herring Prospectus but not defined herein, shall have, to the extent

applicable, the meanings ascribed to such terms under the Companies Act, the SEBI Regulations, the SCRA, the

Depositories Act or the rules and regulations made thereunder.

Notwithstanding the foregoing, terms used in of the sections entitled ―Statement of Tax Benefits‖, ―Financial

Statements‖ and ―Main Provisions of Articles of Association‖ on pages 109, 228 and 498, respectively, shall

have the meaning ascribed to such terms in such sections.

General Terms

Term Description

―our Company‖, the

―Company‖, or the ―Issuer‖

Dilip Buildcon Limited, a company incorporated under the Companies Act,

1956, having its registered and corporate office situated at Plot No. 5, Inside

Govind Narayan Singh Gate, Chuna Bhatti, Kolar Road, Bhopal 462 016,

Madhya Pradesh

we/us/our Unless the context otherwise indicates or implies, our Company, its

Subsidiaries and its Joint Ventures, on a consolidated basis

Company Related Terms

Term Description

Articles of Association The articles of association of our Company, as amended

Audit Committee The audit committee of the Board of Director described in the section entitled

―Our Management‖ on page 196

Auditors/Statutory Auditors The joint statutory auditors of our Company, Mukund M. Chitale & Co.,

Chartered Accountants and Naresh Rajani & Co., Chartered Accountants

Board/Board of Directors The board of directors of our Company or a duly constituted committee

thereof

BTGC Agreement The subscription and shareholders‘ agreement dated February 14, 2012

entered into between our Company, our Promoters and BanyanTree Growth

Capital, LLC as amended on March 27, 2015 and January 27, 2016

Compulsorily Convertible

Preference Shares

0.01% compulsorily convertible preference shares of our Company of face

value `100,000 each

Director(s) The director(s) of our Company

Equity Shares The equity shares of our Company of face value of `10 each

Group Companies Companies which are covered under the applicable accounting standards and

other companies as considered material by our Board. For details, please see

the section entitled ―Our Group Companies‖ on page 220

Investor Selling Shareholder BanyanTree Growth Capital, LLC, a company incorporated under the laws of

Mauritius with its principal office at 13, Nexteracom 1, Cybercity, Ebene,

Mauritius

Joint Ventures The joint ventures formed by our Company, namely, (i) ‗Valecha Dilip JV‘

(formed in partnership with Valecha Engineering Limited); (ii) ‗Dilip

Buildcon Private Limited and ITS Infrastructure Private Limited (JV)‘ (formed

in partnership with ITS Infrastructure Private Limited); (iii) KCC Buildcon

Private Limited-Dilip Buildcon Limited JV; (iv) Dilip Buildcon Ltd. & Ranjit

Buildcon Ltd. JV; (v) Dilip Buildcon - Varaha Infra Limited (JV) (formed for

bidding for Ghaghra Bridge to Varanasi section of NH-233 (Pkg-I) project);

(vi) Dilip Buildcon Limited-Varaha Infra Limited (JV) (bidding for Ambala-

Kaithal Section of NH-65); (vii) Dilip Buildcon Limited-Mostobudivelnyi

Zahin No. 112 Limited Liability Company; (DBL -MBZ (JV) ) (bidding for

1

Term Description

Construction of Bridge across River Zuari (Package II); (viii) Dilip Buildcon -

SPML JV (ix) DBL -MBZ (JV) (bidding for Construction of Bridge across

River Zuari (Package I); and (x) DBL -MBZ (JV) (bidding for Construction of

Bridge across River Zuari (Package III)

Key Management Personnel Key management personnel of our Company in terms of the Companies Act,

2013 and the SEBI Regulations as disclosed in the section entitled ―Our

Management‖ on page 196

Memorandum of Association The memorandum of association of our Company

Promoters The promoters of our Company namely, Dilip Suryavanshi, Seema

Suryavanshi, Devendra Jain and Suryavanshi Family Trust. For details, please

see the section entitled ―Our Promoters and Promoter Group‖ on page 215

Promoter Group Persons and entities constituting the promoter group of our Company in terms

of Regulation 2(1)(zb) of the SEBI Regulations. For details, please see the

section entitled ―Our Promoters and Promoter Group‖ on page 215

Promoter Selling Shareholders Dilip Suryavanshi and Devendra Jain

Registered and Corporate

Office

Registered and corporate office of our Company situated at Plot No. 5, Inside

Govind Narayan Singh Gate, Chuna Bhatti, Kolar Road, Bhopal 462 016,

Madhya Pradesh

Shareholders Shareholders of our Company

Subsidiaries Subsidiaries of our Company set out in the section entitled ―Our Subsidiaries‖

on page 184

Issue Related Terms

Term Description

Acknowledgement Slip The slip or document issued by the Designated Intermediary to a Bidder as

proof of registration of the Bid cum Application Form

Allot/Allotment/Allotted Unless the context otherwise requires, allotment of the Equity Shares pursuant

to the Fresh Issue and transfer of the Equity Shares offered by the Selling

Shareholders pursuant to the Offer for Sale to the Allottees

Allottee A successful Bidder to whom the Equity Shares are Allotted

Allotment Advice Note, advice or intimation of Allotment sent to the Bidders who have been or

are to be Allotted the Equity Shares after the Basis of Allotment has been

approved by the Designated Stock Exchange

Anchor Investor A Qualified Institutional Buyer, applying under the Anchor Investor Portion in

accordance with the requirements specified in the SEBI Regulations and this

Red Herring Prospectus

Anchor Investor Allocation

Price

Price at which Equity Shares are allocated to Anchor Investors in terms of the

Red Herring Prospectus, decided by our Company in consultation with the

Selling Shareholders and the BRLMs

Anchor Investor Application

Form

The form used by an Anchor Investor to make a Bid in the Anchor Investor

Portion and which will be considered as an application for Allotment in terms

of this Red Herring Prospectus and Prospectus

Anchor Investor Bid/Issue

Period

One Working Day prior to the Bid/Issue Opening Date, on which Bids by

Anchor Investors shall be submitted

Anchor Investor Issue Price Final price at which the Equity Shares will be Allotted to Anchor Investors in

terms of the Red Herring Prospectus and the Prospectus, which price will be

equal to or higher than the Issue Price but not higher than the Cap Price

The Anchor Investor Issue Price will be decided by our Company and the

Selling Shareholders in consultation with the BRLMs

Anchor Investor Portion Up to 60% of the QIB Portion consisting of up to [●] Equity Shares which may be allocated by our Company and the Selling Shareholders in consultation

with the BRLMs to Anchor Investors on a discretionary basis

One-third of the Anchor Investor Portion shall be reserved for Mutual Funds,

subject to valid Bids being received from Mutual Funds at or above the price

at which allocation is being done to Anchor Investors

2

Term Description

Application Supported by

Blocked Amount or ASBA

An application, whether physical or electronic, used by ASBA Bidders to

make a Bid by authorising an SCSB to block the Bid Amount in the ASBA

Account

ASBA Account A bank account maintained with an SCSB and specified in the ASBA Form

for blocking the Bid Amount mentioned in the ASBA Form

ASBA Bid A Bid made by an ASBA Bidder including all revisions and modifications

thereto as permitted under the SEBI Regulations

ASBA Bidder All Bidders other than Anchor Investors

ASBA Form An application form, whether physical or electronic, used by ASBA Bidders

which will be considered as the application for Allotment in terms of the Red

Herring Prospectus and the Prospectus

Basis of Allotment The basis on which the Equity Shares will be Allotted to successful Bidders

under the Issue and which is described in the section entitled ―Issue

Procedure‖ on page 454

Bid An indication to make an offer during the Bid/Issue Period by an ASBA

Bidder pursuant to submission of the ASBA Form, or during the Anchor

Investor Bid/Issue Period by an Anchor Investor pursuant to submission of the

Anchor Investor Application Form, to subscribe to or purchase the Equity

Shares of our Company at a price within the Price Band, including all

revisions and modifications thereto as permitted under the SEBI Regulations

Bid Amount The highest value of optional Bids indicated in the Bid cum Application Form

and payable by the Bidder or blocked in the ASBA Account of the Bidder, as

the case may be, upon submission of the Bid in the Issue, which shall be net of

Retail Discount for Retail Individual Bidders

Bid cum Application Form The Anchor Investor Application Form or the ASBA Form, as the context

requires

Bid/Issue Closing Date Except in relation to any Bids received from the Anchor Investors, the date

after which the Designated Intermediaries will not accept any Bids, which

shall be published in (i) all editions of Business Standard (a widely circulated

English national daily newspaper); and (ii) all editions of Business Standard (a

widely circulated Hindi national daily newspaper with wide circulation in

Madhya Pradesh)

Bid/Issue Opening Date Except in relation to any Bids received from the Anchor Investors, the date on

which the Designated Intermediaries shall start accepting Bids, which shall be

published in (i) all editions of Business Standard (a widely circulated English

national daily newspaper); and (ii) all editions of Business Standard (a widely

circulated Hindi national daily newspaper with wide circulation in Madhya

Pradesh)

Bid/Issue Period Except in relation to Anchor Investors, the period between the Bid/Issue

Opening Date and the Bid/Issue Closing Date, inclusive of both days, during

which Bidders can submit their Bids, including any revisions thereof

Bid Lot [●] Equity Shares

Bidder Any prospective investor who makes a Bid pursuant to the terms of the Red

Herring Prospectus and the Bid cum Application Form and unless otherwise

states or implies, includes an Anchor Investor

Bidding Centers Centers at which the Designated Intermediaries shall accept ASBA Forms, i.e,

Designated SCSB Branch for SCSBs, Specified Locations for Syndicate,

Broker Centres for Registered Brokers, Designated RTA Locations for RTAs

and Designated CDP Locations for CDPs

Book Building Process The book building process, as provided in Schedule XI of the SEBI

Regulations, in terms of which the Issue is being made

Book Running Lead Managers/

BRLMs

The book running lead managers to the Issue namely, Axis Capital Limited,

IIFL Holdings Limited, JM Financial Institutional Securities Limited and PNB

Investment Services Limited

Broker Centres Broker centers notified by the Stock Exchanges where Bidders can submit the

ASBA Forms to a Registered Broker

The details of such Broker Centers, along with the names and contact details

3

Term Description

of the Registered Brokers are available on the websites of the respective Stock

Exchanges (www.bseindia.com and www.nseindia.com)

CAN/Confirmation of

Allocation Note

Notice or intimation of allocation of the Equity Shares sent to Anchor

Investors, who have been allocated the Equity Shares, after the Anchor

Investor Bid/Issue Period

Cap Price The higher end of the Price Band, being ` [●] per Equity Share, above which

the Issue Price will not be finalised and above which no Bids will be accepted

Cash Escrow Agreement The agreement dated July 19, 2016 entered into between our Company, the

Selling Shareholders, the Registrar to the Issue, the BRLMs, the Escrow

Collection Bank(s) and the Refund Bank(s) for collection of the Bid Amounts

from Anchor Investors, transfer of funds to the Public Issue Account and

where applicable, refunds of the amounts collected from Anchor Investors, on

the terms and conditions thereof

Client ID Client identification number maintained with one of the Depositories in

relation to a demat account

Collecting Depository

Participant or CDP

A depository participant as defined under the Depositories Act, 1996,

registered with SEBI and who is eligible to procure Bids at the Designated

CDP Locations in terms of circular no. CIR/CFD/POLICYCELL/11/2015

dated November 10, 2015 issued by SEBI

Cut-off Price Issue Price, finalised by our Company and the Selling Shareholders in

consultation with the BRLMs

Only Retail Individual Bidders are entitled to Bid at the Cut-off Price. QIBs

and Non-Institutional Bidders are not entitled to Bid at the Cut-off Price

DP/ Depository Participant A depository participant as defined under the Depositories Act

DP ID Depository Participant‘s Identification

Demographic Details Details of the Bidders including the Bidder‟s address, name of the Bidder‟s

father/husband, investor status, occupation and bank account details

Designated CDP Locations Such locations of the CDPs where Bidders can submit the ASBA Forms.

The details of such Designated CDP Locations, along with names and contact

details of the Collecting Depository Participants eligible to accept Bid cum

Application Forms are available on the respective websites of the Stock

Exchanges (www.bseindia.com and www.nseindia.com)

Designated Date The date on which funds are transferred from the Escrow Account and the

amounts blocked by the SCSBs are transferred from the ASBA Accounts, as

the case may be, to the Public Issue Account or the Refund Account, as

appropriate, after filing of the Prospectus with the RoC

Designated Intermediaries Syndicate, sub-syndicate/agents, SCSBs, Registered Brokers, CDPs and

RTAs, who are authorized to collect ASBA Forms from the ASBA Bidders, in

relation to the Issue

Designated RTA Locations Such locations of the RTAs where Bidders can submit ASBA Forms to RTAs.

The details of such Designated RTA Locations, along with names and contact

details of the RTAs eligible to accept Bid cum Application Forms are available

on the respective websites of the Stock Exchanges (www.bseindia.com and

www.nseindia.com)

Designated SCSB Branches Such branches of the SCSBs which shall collect the ASBA Forms, a list of

which is available on the website of SEBI at

http://www.sebi.gov.in/sebiweb/home/list/5/33/0/0/Recognised-Intermediaries

or at such other website as may be prescribed by SEBI from time to time

Designated Stock Exchange BSE

Draft Red Herring Prospectus

or DRHP

The draft red herring prospectus dated February 1, 2016, issued in accordance

with the SEBI Regulations, which did not contain complete particulars of the

price at which the Equity Shares will be Allotted and the size of the Issue

Eligible NRI(s) NRI(s) from jurisdictions outside India where it is not unlawful to make an

offer or invitation under the Issue and in relation to whom the ASBA Form

and this Red Herring Prospectus will constitute an invitation to purchase the

4

Term Description

Equity Shares

Escrow Account ‗No-lien‘ and ‗non-interest bearing‘ account opened with the Escrow

Collection Bank(s) and in whose favour Anchor Investors will transfer money

through direct credit/NEFT/RTGS in respect of the Bid Amount when

submitting a Bid

Escrow Collection Bank(s) Banks which are clearing members and registered with SEBI as bankers to an

issue and with whom the Escrow Account will be opened, in this case being

HDFC Bank Limited

First Bidder Bidder whose name shall be mentioned in the Bid cum Application Form or

the Revision Form and in case of joint Bids, whose name shall also appear as

the first holder of the beneficiary account held in joint names

Floor Price The lower end of the Price Band, subject to any revision thereto, in this case

being ` [●] at or above which the Issue Price will be finalised and below which

no Bids will be accepted

Fresh Issue The fresh issue of up to [●] Equity Shares aggregating up to ` 4,300 million by

our Company

General Information

Document/GID

The General Information Document prepared and issued in accordance with

the circular (CIR/CFD/DIL/12/2013) dated October 23, 2013 notified by

SEBI, suitably modified and included in the section entitled ―Issue Procedure‖

on page 454

Issue The public issue of up to [●] Equity Shares of face value of `10 each for cash

at a price of ` [●] each, aggregating up to ` [●] million comprising the Fresh

Issue and the Offer for Sale

Issue Agreement The agreement dated January 27, 2016 entered into between our Company, the

Selling Shareholders and the BRLMs, pursuant to which certain arrangements

are agreed to in relation to the Issue

Issue Price The final price at which the Equity Shares will be Allotted to Bidders other

than Anchor Investors. Equity Shares will be Allotted to Anchor Investors at

the Anchor Investor Issue Price in terms of this Red Herring Prospectus

In relation to Retail Individual Bidders, Issue Price shall be the final price (less

Retail Discount) at which the Equity Shares will be Allotted to Retail

Individual Bidders.

The Issue Price will be decided by our Company in consultation with the

Selling Shareholders and the BRLMs on the Pricing Date

Issue Proceeds The proceeds of the Issue that are available to our Company and the Selling

Shareholders

Maximum RIB Allottees The maximum number of Retail Individual Bidders who can be allotted the

minimum Bid Lot. This is computed by dividing the total number of Equity

Shares available for Allotment to Retail Individual Bidders by the minimum

Bid Lot

Mutual Fund Portion 5% of the QIB Portion (excluding the Anchor Investor Portion), or [●] Equity

Shares which shall be available for allocation to Mutual Funds only

Mutual Funds Mutual funds registered with SEBI under the Securities and Exchange Board

of India (Mutual Funds) Regulations, 1996

Net Proceeds Proceeds of the Fresh Issue less our Company‘s share of the Issue expenses.

For further information about use of the Issue Proceeds and the Issue

expenses, please see the section entitled ―Objects of the Issue‖ on page 97

Non-Institutional Bidders/

NIBs

All Bidders that are not QIBs or Retail Individual Bidders and who have Bid

for the Equity Shares for an amount more than ` 200,000 (but not including

NRIs other than Eligible NRIs)

Non-Institutional Portion The portion of the Issue being not less than 15% of the Issue comprising [●]

Equity Shares which shall be available for allocation on a proportionate basis

to Non-Institutional Bidders, subject to valid Bids being received at or above

the Issue Price

Non-Resident Indian/ Non- An individual resident outside India who is a citizen or is an ‗overseas citizen

5

Term Description

Resident of India‘ cardholder within the meaning of Section 7A of the Citizenship Act,

1955 and includes a Non Resident Indian, FVCIs, FIIs and FPIs

Offer for Sale The offer for sale of up to 1,136,364 Equity Shares by Dilip Suryavanshi, up

to 1,136,364 Equity Shares by Devendra Jain and up to 7,954,545 Equity

Shares by the Investor Selling Shareholder at the Issue Price aggregating up to

` [●] million in terms of this Red Herring Prospectus

Price Band Price band of a minimum price of ` [●] per Equity Share (Floor Price) and the

maximum price of ` [●] per Equity Share (Cap Price), including any revisions

thereof

The Price Band, the Retail Discount and the minimum Bid Lot size for the

Issue will be decided by our Company and the Selling Shareholders in

consultation with the BRLMs and will be advertised, at least five Working

Days prior to the Bid/Issue Opening Date, in (i) all editions of Business

Standard (a widely circulated English national daily newspaper); and (ii) all

editions of Business Standard (a widely circulated Hindi national daily

newspaper with wide circulation in Madhya Pradesh)

Pricing Date The date on which our Company, in consultation with the Selling Shareholders

and the BRLMs, will finalise the Issue Price

Prospectus The Prospectus to be filed with the RoC after the Pricing Date in accordance

with Section 26 of the Companies Act, 2013, and the provisions of the SEBI

Regulations containing, amongst other things the Issue Price that is determined

at the end of the Book Building Process, the size of the Issue and certain other

information, including any addenda or corrigenda thereto

Public Issue Account ‗No-lien‘ and ‗non-interest bearing‘ bank account opened in accordance with

Section 40 of the Companies Act, 2013 to receive monies from the Escrow

Account and from the ASBA Accounts on the Designated Date

QIB Category/QIB Portion The portion of the Issue (including the Anchor Investor Portion) being not

more than 50% of the Issue comprising [●] Equity Shares which shall be

Allotted to QIBs including Anchor Investors

Qualified Institutional Buyers

or QIBs or QIB Bidders

Qualified institutional buyers as defined under Regulation 2(1)(zd) of the

SEBI Regulations

Red Herring Prospectus or RHP This Red Herring Prospectus dated July 21, 2016 issued in accordance with

Section 32 of the Companies Act, 2013 and the provisions of the SEBI

Regulations, which will not have complete particulars of the price at which the

Equity Shares will be offered and the size of the Issue

The Red Herring Prospectus has been registered with the RoC at least three

working days before the Bid/ Issue Opening Date and will become the

Prospectus upon filing with the RoC after the Pricing Date

Refund Account(s) ‗No-lien‘ and ‗non-interest bearing‘ account opened with the Refund Bank(s),

from which refunds, if any, of the whole or part of the Bid Amount to Anchor

Investors shall be made

Refund Bank(s) HDFC Bank Limited

Registered Brokers Stock brokers registered with the stock exchanges having nationwide

terminals, other than BRLMs and the Syndicate Members, eligible to procure

Bids in terms of Circular No. CIR/CFD/14/2012 dated October 4, 2012 issued

by SEBI

Registrar to the Issue or

Registrar

Link Intime India Private Limited

Registrar and Share Transfer

Agents or RTAs

Registrar and share transfer agents registered with SEBI and eligible to

procure Bids at the Designated RTA Locations in terms of circular no.

CIR/CFD/POLICYCELL/11/2015 dated November 10, 2015 issued by SEBI

Registrar Agreement The agreement dated January 27, 2016 entered into between our Company, the

Selling Shareholders and the Registrar to the Issue in relation to the

responsibilities and obligations of the Registrar to the Issue pertaining to the

Issue

Restated Consolidated Restated consolidated financial statements of assets and liabilities as at, for

6

Term Description

Financial Statements the years ended, March 31, 2016, 2015, 2014, 2013 and 2012 and statement of

profit and loss and cash flows for the years ended March 31, 2016, 2015, 2014,

2013 and 2012 of our Company which were prepared in accordance with

Indian GAAP and the Companies Act) and restated in accordance with the

SEBI Regulations

Restated Financial Statements Collectively, the Restated Consolidated Financial Statements and the Restated

Unconsolidated Financial Statements

Restated Unconsolidated

Financial Statements

Restated unconsolidated financial statements of assets and liabilities as at, for

the years ended, March 31, 2016, 2015, 2014, 2013 and 2012 and statement of

profit and loss and cash flows for the years ended March 31, 2016, 2015, 2014,

2013 and 2012 of our Company which were prepared in accordance with

Indian GAAP and the Companies Act) and restated in accordance with the

SEBI Regulations

Retail Discount Discount of [●]% (equivalent of ` [●]) to the Issue Price given to Retail

Individual Bidders

The Retail Discount will be decided by our Company and the Selling

Shareholder in consultation with the BRLMs and will be advertised at least

five Working Days prior to the Bid/ Issue Opening Date in (i) all editions of

the English national daily newspaper Business Standard (a widely circulated

English national daily newspaper); and (ii) all editions of the Hindi national

daily newspaper Business Standard (a widely circulated Hindi national daily

newspaper with wide circulation in Madhya Pradesh.)

Retail Individual Bidders/ RIBs Individual Bidders who have Bid for the Equity Shares for an amount not

more than ` 200,000 in any of the bidding options in the Issue (including

HUFs applying through their Karta and Eligible NRIs and does not include

NRIs other than Eligible NRIs)

Retail Portion The portion of the Issue being less than 35% of the Issue comprising [●]

Equity Shares which shall be available for allocation to Retail Individual

Bidder(s) in accordance with the SEBI Regulations

Revision Form Form used by the Bidders to modify the quantity of the Equity Shares or the

Bid Amount in any of their ASBA Forms or any previous Revision Forms.

QIB Bidders and Non-Institutional Bidders are not allowed to withdraw or

lower their Bids (in terms of number of Equity Shares or the Bid Amount) at

any stage. Retail Individual Bidders can revise their Bids during the Bid/Issue

Period and withdraw their Bids until the Bid/Issue Closing Date

Self Certified Syndicate

Bank(s) or SCSB(s)

Banks registered with SEBI, offering services in relation to ASBA, a list of

which is available on the website of SEBI at

http://www.sebi.gov.in/sebiweb/home/list/5/33/0/0/Recognised-Intermediaries

and updated from time to time

Selling Shareholders The Promoter Selling Shareholders and the Investor Selling Shareholder

Share Escrow Agent Escrow agent appointed pursuant to the Share Escrow Agreement, being, Link

Intime India Private Limited

Share Escrow Agreement The agreement dated July 19, 2016 entered into between our Company, the

Selling Shareholders and the Share Escrow Agent in connection with the

transfer of Equity Shares under the Offer for Sale by the Selling Shareholders

and credit of such Equity Shares to the demat accounts of the Allottees

Specified Locations Bidding centres where the Syndicate shall accept ASBA Forms from Bidders

Stock Exchanges BSE Limited and the National Stock Exchange of India Limited

Syndicate Agreement The agreement dated July 19, 2016, entered into between the BRLMs, the

Syndicate Members, our Company, the Selling Shareholders and the Registrar

to the Issue in relation to collection of Bid cum Application Forms by the

Syndicate

Syndicate/ Members of the

Syndicate

The BRLMs and the Syndicate Members

Syndicate Members Intermediaries, registered with SEBI who are permitted to carry out activities

as an underwriter, being, India Infoline Limited and JM Financial Services

7

Term Description

Limited

Underwriters The BRLMs and the Syndicate Members

Underwriting Agreement The agreement dated [●] to be entered into between the Underwriters, our

Company and the Selling Shareholders to be entered into on or after the

Pricing Date

Wilful Defaulter A person who is categorised as a wilful defaulter by any bank or financial

institution or consortium thereof, in accordance with guidelines on wilful

defaulters issued by the RBI

Working Day ―Working Day‖, with reference to (a) announcement of Price Band; and (b)

Bid/Issue Period, shall mean all days, excluding Saturdays, Sundays and

public holidays, on which commercial banks in Mumbai are open for business;

and (c) the time period between the Bid/Issue Closing Date and the listing of

the Equity Shares on the Stock Exchanges, shall mean all trading days of

Stock Exchanges, excluding Sundays and bank holidays, as per the SEBI

Circular SEBI/HO/CFD/DIL/CIR/P/2016/26 dated January 21, 2016

Technical/Industry Related Terms /Abbreviations

Term Description

AIBP Accelerated Irrigation Benefits Program

BOT Build, Operate and Transfer

BOT (Annuity) Annuity based BOT projects

BOT (Toll) Toll based BOT projects

CAD Command Area Development

COD Date of commencement of the commercial operation of project

DBFOT Design, Build, Finance, Operate and Transfer

DBFOMT Design, Build, Finance, Operate, Maintain and Transfer

EPC Engineering, Procurement and Construction

GST Goods and Services Tax

Minimum Wages Act The Minimum Wages Act, 1948

MoRTH The Ministry of Road Transport and Highways, Government of India

MPRDC Madhya Pradesh Road Development Corporation Limited

NH National Highway

NH Act National Highways Act, 1956

NHAI National Highways Authority of India

NHDP National Highways Development Project

O&M Operation and Maintenance

SPV Special Purpose Vehicle

Conventional and General Terms or Abbreviations

Term Description

AGM Annual General Meeting

AIF Alternative Investment Fund as defined in and registered with SEBI under the

Securities and Exchange Board of India (Alternative Investment Funds)

Regulations, 2012

AS/Accounting Standards Accounting Standards issued by the Institute of Chartered Accountants of India

Axis Axis Capital Limited

Bn/bn Billion

BSE BSE Limited

CAGR Compounded Annual Growth Rate

Category I Foreign Portfolio

Investors

FPIs who are registered with SEBI as ―Category I foreign portfolio investors‖

under the SEBI FPI Regulations

Category II Foreign Portfolio

Investors

FPIs who are registered with SEBI as ―Category II foreign portfolio investors‖

under the SEBI FPI Regulations

Category III Foreign Portfolio

Investors

FPIs who are registered with SEBI as ―Category III foreign portfolio investors‖

under the SEBI FPI Regulations

CDSL Central Depository Services (India) Limited

8

Term Description

CENVAT Central Value Added Tax

CESTAT Customs, Excise and Service Tax Appellate Tribunal

CIN Corporate Identity Number

CIT Commissioner of Income Tax

Cess Act Building and Other Construction Workers Welfare Cess Act, 1996

Companies Act Companies Act, 1956 and/or the Companies Act, 2013, as applicable

Companies Act, 1956 Companies Act, 1956, as amended (without reference to the provisions thereof

that have ceased to have effect upon the notification of the Notified Sections)

Companies Act, 2013 The Companies Act, 2013, to the extent in force pursuant to the notification of

the Notified Sections

Construction Workers Act The Building and Other Construction Workers (Regulation of Employment and

Conditions of Service) Act, 1996

CLRA Contract Labour (Regulation and Abolition) Act,1979

C.P.C Civil Procedure Code, 1908

Cr.P.C Criminal Procedure Code, 1973

Depositories NSDL and CDSL

Depositories Act The Depositories Act, 1996

DIPP Department of Industrial Policy and Promotion, Ministry of Commerce and

Industry, Government of India

DIN Director Identification Number

EGM Extraordinary General Meeting

EPS Earnings Per Share

ESI Act Employee State Insurance under the Employees State Insurance Act, 1948

FCNR Foreign Currency Non-Resident

FDI Foreign Direct Investment

FDI Policy Consolidated Foreign Direct Investment Policy notified by DIPP D/o IPP F.

No. 5(1)/2016-FC-1 dated June 7, 2016, effective from June 7, 2016

FEMA Foreign Exchange Management Act, 1999, read with rules and regulations

thereunder

FEMA Regulations Foreign Exchange Management (Transfer or Issue of Security by a Person

Resident Outside India) Regulations, 2000 and amendments thereto

FII(s) Foreign Institutional Investors as defined under the SEBI FPI Regulations

FPI(s) A foreign portfolio investor as defined under the SEBI FPI Regulations

Financial Year/Fiscal/FY The period of 12 months ending March 31 of that particular year

FIPB Foreign Investment Promotion Board

FIR First Information Report

FVCI Foreign venture capital investors as defined and registered under the SEBI

FVCI Regulations

GDP Gross Domestic Product

GIR General Index Register

GoI or Government Government of India

HUF Hindu Undivided Family

ICAI The Institute of Chartered Accountants of India

IFRS International Financial Reporting Standards

IIFL IIFL Holdings Limited

Income Tax Act The Income Tax Act, 1961

India Republic of India

Indian GAAP Generally Accepted Accounting Principles in India

IPC Indian Penal Code, 1860

IPO Initial Public Offering

IRDAI Insurance Regulatory and Development Authority of India

IST Indian Standard Time

IT Information Technology

JM Financial JM Financial Institutional Securities Limited

LIBOR London Interbank Offered Rate

MICR Magnetic Ink Character Recognition

Mn Million

9

Term Description

N.A./NA Not Applicable

NAV Net Asset Value

NECS National Electronic Clearing Services

NEFT National Electronic Fund Transfer

NH Fee Rules National Highways Fee (Determination of Rates and Collection) Rules, 2008

NHAI Act National Highways Authority of India Act, 1988

Notified Sections The sections of the Companies Act, 2013 that have been notified by the

Ministry of Corporate Affairs, Government of India

NRE Account Non Resident External Account

NRI An individual resident outside India who is citizen of India or is a person of

Indian origin, and shall have the meaning ascribing to such term in the Foreign

Exchange Management (Deposit) Regulations, 2000

NRO Account Non Resident Ordinary Account

NSDL National Securities Depository Limited

NSE The National Stock Exchange of India Limited

OCB/Overseas Corporate Body A company, partnership, society or other corporate body owned directly or

indirectly to the extent of at least 60% by NRIs including overseas trusts, in

which not less than 60% of beneficial interest is irrevocably held by NRIs

directly or indirectly and which was in existence on October 3, 2003 and

immediately before such date had taken benefits under the general permission

granted to OCBs under FEMA. OCBs are not allowed to invest in the Issue

p.a. Per annum

P/E Ratio Price/Earnings Ratio

PAN Permanent Account Number

PAT Profit After Tax

PNBISL PNB Investment Services Limited

RBI The Reserve Bank of India

RoC Registrar of Companies, Madhya Pradesh situated at 3rd Floor, 'A' Block,

Sanjay Complex, Jayendra Ganj, Gwalior, Madhya Pradesh

RoNW Return on Net Worth

`/Rs./Rupees/INR Indian Rupees

RTGS Real Time Gross Settlement

SCRA Securities Contracts (Regulation) Act, 1956

SCRR Securities Contracts (Regulation) Rules, 1957

SEBI The Securities and Exchange Board of India constituted under the SEBI Act,

1992

SEBI Act Securities and Exchange Board of India Act, 1992

SEBI AIF Regulations Securities and Exchange Board of India (Alternative Investments Funds)

Regulations, 2012

SEBI FII Regulations Securities and Exchange Board of India (Foreign Institutional Investors)

Regulations, 1995

SEBI FPI Regulations Securities and Exchange Board of India (Foreign Portfolio Investors)

Regulations, 2014

SEBI FVCI Regulations Securities and Exchange Board of India (Foreign Venture Capital Investors)

Regulations, 2000

SEBI Listing Regulations Securities and Exchange Board of India (Listing Obligations and Disclosure

Requirements) Regulations, 2015

SEBI Regulations Securities and Exchange Board of India (Issue of Capital and Disclosure

Requirements) Regulations, 2009

SEBI VCF Regulations Securities and Exchange Board of India (Venture Capital Funds) Regulations,

1996

Securities Act United States Securities Act of 1933

SICA Sick Industrial Companies (Special Provisions) Act, 1985

Sq. ft. Square feet

STT Securities Transaction Tax

State Government The government of a state in India

Stock Exchanges The BSE and the NSE

10

Term Description

Takeover Regulations Securities and Exchange Board of India (Substantial Acquisition of Shares and

Takeovers) Regulations, 2011

U.K. United Kingdom

U.S./U.S.A/United States United States of America

US GAAP Generally Accepted Accounting Principles in the United States of America

USD/US$ United States Dollars

VAS Value Added Services

VAT Value Added Tax

VCFs Venture Capital Funds as defined in and registered with SEBI under the SEBI

VCF Regulations or the SEBI AIF Regulations, as the case may be

Wages Act The Payment of Wages Act, 1936

11

PRESENTATION OF FINANCIAL, INDUSTRY AND MARKET DATA

Certain Conventions

All references to ―India‖ contained in this Red Herring Prospectus are to the Republic of India and all references

to the ―U.S.‖, ―U.S.A‖ or ―United States‖ are to the United States of America.

Unless stated otherwise, all references to page numbers in this Red Herring Prospectus are to the page numbers

of this Red Herring Prospectus.

Financial Data

Unless stated otherwise, the financial information in this Red Herring Prospectus is derived from our Restated

Financial Statements.

In this Red Herring Prospectus, any discrepancies in any table between the total and the sums of the amounts

listed are due to rounding off. All figures in decimals have been rounded off to the second decimal and all

percentage figures have been rounded off to one decimal place.

Our Company‘s financial year commences on April 1 and ends on March 31 of the next year; accordingly, all

references to a particular financial year, unless stated otherwise, are to the 12 month period ended on March 31

of that year.

There are significant differences between Indian GAAP, U.S. GAAP and IFRS. Our Company does not provide

reconciliation of its financial information to IFRS or U.S. GAAP. Our Company has not attempted to explain

those differences or quantify their impact on the financial data included in this Red Herring Prospectus and it is

urged that you consult your own advisors regarding such differences and their impact on our financial data. For

further details, please see the section entitled ―Risk Factors – Significant differences exist between Indian

GAAP and other accounting principles with which investors may be more familiar‖ on page 50. Accordingly,

the degree to which the financial information included in this Red Herring Prospectus will provide meaningful

information is entirely dependent on the reader‘s level of familiarity with Indian accounting policies and

practices, the Companies Act, the Indian GAAP and the SEBI Regulations. Any reliance by persons not familiar

with Indian accounting policies and practices on the financial disclosures presented in this Red Herring

Prospectus should accordingly be limited.

Unless the context otherwise indicates, any percentage amounts, as set forth in the sections entitled ―Risk

Factors‖, ―Our Business‖, ―Management‘s Discussion and Analysis of Financial Conditional and Results of

Operations‖ on pages 15, 143 and 384, respectively, and elsewhere in this Red Herring Prospectus have been

calculated on the basis of our Restated Financial Statements.

Currency and Units of Presentation

All references to:

―Rupees‖ or ―`‖ or ―INR‖ or ―Rs.‖ are to Indian Rupee, the official currency of the Republic of India;

―USD‖ or ―US$‖ are to United States Dollar, the official currency of the United States; and

Our Company has presented certain numerical information in this Red Herring Prospectus in ―million‖ units.

One million represents 1,000,000 and one billion represents 1,000,000,000.

Exchange Rates

This Red Herring Prospectus contains conversion of certain other currency amounts into Indian Rupees that

have been presented solely to comply with the SEBI Regulations. These conversions should not be construed as

a representation that these currency amounts could have been, or can be converted into Indian Rupees, at any

particular rate.

The following table sets forth, for the periods indicated, information with respect to the exchange rate between

the Rupee and the US$ (in Rupees per US$):

12

(Amount in `, unless otherwise specified)

Currency As on March

31, 2011

As on March

31, 2012

As on March

31, 2013

As on March

31, 2014

As on March

31, 2015

As on March

31, 2016

1 US$ 44.65 51.16(1)

54.39(2)

60.10(3)

62.59 66.33 Source: RBI Reference Rate (1) Exchange rate as on March 30, 2012, as RBI Reference Rate is not available for March 31, 2012 being a Saturday. (2) Exchange rate as on March 28, 2013, as RBI Reference Rate is not available for March 31, 2013, March 30, 2013 and March 29,

2013 being a Sunday, Saturday and a public holiday, respectively. (3) Exchange rate as on March 28, 2014, as RBI Reference Rate is not available for March 31, 2014, March 30, 2014 and March 29,

2014 being a public holiday, a Sunday and a Saturday, respectively.

Industry and Market Data

Unless stated otherwise, industry and market data used in this Red Herring Prospectus has been obtained or

derived from publicly available information as well as industry publications, ‗Roads and Highway, Annual

Review October 2015‘ issued by CRISIL Research, a division of CRISIL Limited and other sources.

Industry publications generally state that the information contained in such publications has been obtained from

publicly available documents from various sources believed to be reliable but their accuracy and completeness

are not guaranteed and their reliability cannot be assured. Accordingly, no investment decisions should be based

on such information. Although we believe the industry and market data used in this Red Herring Prospectus is

reliable, it has not been independently verified by us or the BRLMs or any of their affiliates or advisors. The

data used in these sources may have been re-classified by us for the purposes of presentation. Data from these

sources may also not be comparable.

The extent to which the market and industry data used in this Red Herring Prospectus is meaningful depends on

the reader‘s familiarity with and understanding of the methodologies used in compiling such data. There are no

standard data gathering methodologies in the industry in which business of our Company is conducted, and

methodologies and assumptions may vary widely among different industry sources.

In accordance with the SEBI Regulations, the section entitled ―Basis for Issue Price‖ on page 105 includes

information relating to our peer group companies. Such information has been derived from publicly available

sources, and neither we, nor the BRLMs have independently verified such information.

13

FORWARD-LOOKING STATEMENTS

This Red Herring Prospectus contains certain ―forward-looking statements‖. These forward-looking statements

generally can be identified by words or phrases such as ―aim‖, ―anticipate‖, ―believe‖, ―expect‖, ―estimate‖,

―intend‖, ―objective‖, ―plan‖, ―project‖, ―will‖, ―will continue‖, ―will pursue‖ or other words or phrases of

similar import. Similarly, statements that describe our strategies, objectives, plans, prospects or goals are also

forward-looking statements. All forward-looking statements are subject to risks, uncertainties and assumptions

about us that could cause actual results to differ materially from those contemplated by the relevant forward-

looking statement.

Actual results may differ materially from those suggested by the forward-looking statements due to risks or

uncertainties associated with the expectations with respect to, but not limited to, regulatory changes pertaining

to the industries in India in which our Company operates and our ability to respond to them, our ability to

successfully implement our strategy, our growth and expansion, technological changes, our exposure to market

risks, general economic and political conditions in India which have an impact on its business activities or

investments, the monetary and fiscal policies of India, inflation, deflation, unanticipated turbulence in interest

rates, foreign exchange rates, equity prices or other rates or prices, the performance of the financial markets in

India and globally, changes in domestic laws, regulations and taxes and changes in competition in the industries

in which we operate. Important factors that could cause actual results to differ materially from our Company‘s

expectations include, but are not limited to, the following:

General economic and business conditions and level of investment and activity in the infrastructure development and construction sector;

Inability to identify or acquire new projects or win bids for new projects;

Changes in Government policies and budgetary allocations for investments in road infrastructure;

Delays, modifications or cancellations of projects included in our order book and our future projects;

Lower than expected returns on our investment in BOT projects; and

Ability to obtain financing in order to meet our capital expenditure requirements and pursue our growth strategy.

For further discussion of factors that could cause the actual results to differ from the expectations, please see the

sections entitled ―Risk Factors‖, ―Our Business‖ and ―Management‘s Discussion and Analysis of Financial

Condition and Results of Operations‖ on pages 15, 143 and 384, respectively. By their nature, certain market

risk disclosures are only estimates and could be materially different from what actually occurs in the future. As a

result, actual gains or losses could materially differ from those that have been estimated.

We cannot assure Bidders that the expectations reflected in these forward-looking statements will prove to be

correct. Given these uncertainties, Bidders are cautioned not to place undue reliance on such forward-looking

statements and not to regard such statements as a guarantee of future performance.

Forward-looking statements reflect the current views of our Company as of the date of this Red Herring

Prospectus and are not a guarantee of future performance. These statements are based on the management‘s

beliefs and assumptions, which in turn are based on currently available information. Although we believe the

assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions

could prove to be inaccurate, and the forward-looking statements based on these assumptions could be incorrect.

Neither our Company, our Directors, the Selling Shareholders, the BRLMs nor any of their respective affiliates

have any obligation to update or otherwise revise any statements reflecting circumstances arising after the date

hereof or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to

fruition. In accordance with SEBI requirements, our Company and BRLMs will ensure that the Bidders in India

are informed of material developments until the time of the grant of listing and trading permission by the Stock

Exchanges. Each of the Selling Shareholders will severally ensure that Bidders are informed of material

developments in relation to statements and undertakings made by him/it, in this Red Herring Prospectus until the

time of the grant of listing and trading permission by the Stock Exchanges.

14

SECTION II: RISK FACTORS

An investment in the Equity Shares involves a high degree of risk. Investors should carefully consider all the

information in this Red Herring Prospectus, including the risks and uncertainties described below, before

making an investment in the Equity Shares. The risks and uncertainties described in this section are not the only

risks that we currently face. Additional risks and uncertainties not currently known to us or that are currently

believed to be immaterial may also have an adverse impact on our business, results of operations and financial

condition. If any of the following risks, or other risks that are not currently known or are currently deemed

immaterial, actually occur, our business, results of operations and financial condition could be materially and

adversely affected and the price of the Equity Shares could decline, causing the investors to lose part or all of

the value of their investment in the Equity Shares. The financial and other related implications of the risk

factors, wherever quantifiable, have been disclosed in the risk factors mentioned below. However, there are

certain risk factors where the financial impact is not quantifiable and, therefore, cannot be disclosed in such

risk factors.

To obtain a complete understanding, prospective investors should read this section in conjunction with the

sections entitled ―Our Business‖ and ―Management‘s Discussion and Analysis of Financial Condition and

Results of Operations‖ on pages 143 and 384, respectively, as well as the other financial and statistical

information contained in this Red Herring Prospectus. The financial information in this section is derived from

our Restated Financial Statements for the five Financial Years ended March 31, 2016.

Internal Risk Factors

Risks Relating to our Business

1. There are certain criminal proceedings pending against our Company, our Promoters and certain Directors and employees.

There are certain criminal proceedings pending against our Company, our Promoters and certain

Directors which are pending at different levels of adjudication before various courts. The amounts

claimed in these proceedings have been disclosed to the extent ascertainable and quantifiable, and

include amounts jointly and severally from our Company and other parties. There are four criminal

cases pending against our Company, Promoters and Directors. Also, there are various criminal cases

pending against our employees in relation to road accidents, under various sections of the IPC and any

adverse outcome in these cases could have a material adverse impact on the position of our Company.

These proceedings may have a significant impact on our corporate image, reputation, client

relationships and chances of undertaking new projects, divert the attention of our management and

Promoters and waste our corporate resources. If we are unable to neutralize the impact of these

proceedings effectively or efficiently, we may suffer damage to our reputation and relationships with

our clients, lenders, suppliers and communities and experience significant project delays or cost

overruns. Our business, prospects, financial condition and results of operation could be materially and

adversely affected as a result. For details in relation to certain material litigation, please see the section

entitled ―Outstanding Litigation and Material Developments‖ on page 409.

2. There are outstanding legal proceedings against our Company, certain of its Directors, its Promoters, Subsidiaries, its Joint Ventures and Group Companies, which may adversely affect our

business, financial condition and results of operations.

There are outstanding legal proceedings against us that are incidental to our business and operations,

including certain criminal proceedings against our Company, certain of its Directors, its Promoters and

its Subsidiaries, Joint Ventures and Group Companies. These proceedings are pending at different

levels of adjudication before various courts, tribunals, enquiry officers and appellate tribunals. Such

proceedings could divert management time and attention, and consume financial resources in their

defense. Further, an adverse judgment in some of these proceedings could have an adverse impact on

our business, financial condition and results of operations. Additionally, some properties on which we

are developing projects are subject to litigation.

A summary of the outstanding legal proceedings against our Company, its Directors, its Promoters, and

its Subsidiaries, Joint Ventures and Group Companies as disclosed in this Red Herring Prospectus

along with the amount involved, to the extent quantifiable, have been set out below (excluding certain

cases against our Company for traffic accidents caused by our drivers that occurred during the ordinary

15

course of our business):

Litigation against our Company

Sr. No. Nature of Case Number of Outstanding Cases Amount involved(1)

(in ` million) 1. Criminal 3(2) Non-quantifiable

2. Civil 161 635.99

3. Actions taken by statutory and regulatory authorities

66 796.58

4. Taxation matters 3 48.92(3) (1) Approximate amounts involved, may vary due to any penalty or interest. (2) Excluding 139 criminal cases filed against the employees of our Company. (3) This amount does not include amounts deposited with the Income Tax Settlement Commission.

Litigation against the Directors

Sr. No. Nature of Case Number of Outstanding Cases Amount involved(1)

(in ` million) Dilip Suryavanshi(2)

1. Criminal 2 Non-quantifiable

2. Civil 3 1.68

3. Actions taken by statutory and regulatory authorities

3 10.39

4. Taxation matters 1 -(3),(4)

Seema Suryavanshi(2)

1. Criminal 2 Non-quantifiable

2. Taxation matters 1 -(3),(4)

Devendra Jain(2)

1. Criminal 2 Non-quantifiable

2. Civil 2 0.67

3. Actions taken by statutory and regulatory authorities

2 45.40

4. Taxation matters 1 23.52

Naval Jawaharlal Totla

1. Taxation matters 1 6.09(5)

Amogh Kumar Gupta

1. Criminal 1 Non-quantifiable (1) Approximate amounts involved, may vary due to any penalty or interest (2) Also the Promoters of our Company. (3) ` 10,000 per assessment year from 2007-2008 to 2013-2014. (4) This amount does not include amounts deposited with the Income Tax Settlement Commission. (5) Additions in income made in the assessment order.

Litigation against the Subsidiaries and Joint Ventures

Sr. No. Nature of Case Number of Outstanding Cases Amount involved(1)

(in ` million) 1. Civil 7 0.06

2. Arbitration 3 469.61 (1) Approximate amounts involved, may vary due to any penalty or interest

Litigation against the Group Companies

Sr. No. Nature of Case Number of Outstanding Cases Amount involved(1)

(in ` million) 1. Civil 1 0.50

2. Actions taken by statutory and regulatory authorities

1 -

3. Taxation matters 1 6.07 (1) Approximate amounts involved, may vary due to any penalty or interest

We cannot assure you that any of these proceedings will be decided in favour of us, our Promoters, our

Directors, our Subsidiaries, our Joint Ventures or our Group Companies or that no further liability will

arise out of these proceedings. Further, the amounts claimed in these proceedings have been disclosed

16

to the extent ascertainable, excluding contingent liabilities and include amounts claimed. Should any

new developments arise, such as a change in Indian law or rulings by appellate courts or tribunals,

additional provisions may need to be made by us, our Promoters, our Directors, our Subsidiaries or our

Joint Ventures in our respective financial statements, which may adversely affect our business,

financial condition and reputation. For further details of outstanding litigation against us, our Directors,

our Promoters, our Subsidiaries, our Joint Ventures or our Group Companies, please see the section

entitled ―Outstanding Litigation and Material Developments‖ on page 409.

3. Our Company and certain of our Promoters and Directors have been subject to search and seizure operations conducted by the Indian income tax authorities. Any adverse determination by the tax

authorities in this matter could increase our tax liability and subject us to monetary penalties.

Search and seizure proceedings were initiated by the Income Tax Department on June 20, 2012 against

our Company and certain of our Subsidiaries, Promoters, Directors, Promoter Group entities and Group

Companies (the ―Income Tax Search and Seizure Proceedings‖). Pursuant to the Income Tax Search

and Seizure Proceedings, the Deputy Commissioner of Income Tax, Central, Bhopal issued notices

under Section 153A of the Income Tax Act, 1961 for assessment years 2007-08 to 2012-13 on

December 27, 2012, and a notice under Section 143(2) of the Income Tax Act, 1961, for assessment

year 2013-14 on September 10, 2014 against our Company and certain of our Subsidiaries, Promoters,

Directors, Promoter Group entities and Group Companies. Our Company has filed a response to the

assessing officer on December 17, 2013, stating that return of income filed under Section 139(1) of the

Income Tax Act, 1961, for the assessment years 2007-08, 2009-10, 2010-11, 2011-12, and 2012-13,

shall be considered as return of income filed under section 153A of the Income Tax Act, 1961. Our

Company and two of our Promoters, Dilip Suryavanshi and Seema Suryavanshi have filed settlement

applications under Section 245C (1) of the Income Tax Act, 1961 along with fresh computation of

incomes before the Income Tax Settlement Commission, Additional Bench, Mumbai (the ―Settlement

Commission‖) on March 12, 2015. Our Company, Dilip Suryavanshi and Seema Suryavanshi have

deposited amounts aggregating ` 71.00 million, ` 107.20 million and ` 8.80 million, respectively, towards the proposed settlement. These settlement applications are currently pending before the

Principal Bench, Income Tax Settlement Commission, New Delhi. The Principal Commissioner of

Income Tax (Central) Bhopal has filed a writ petition against Seema Suryavanshi, Dilip Suryavanshi

and our Company challenging the afore said order dated May 13, 2015. Notices have been received in

this regard. Further by an order dated June 23, 2016 the Settlement Commission has transferred the

matter from Principal Bench, Income Tax Settlement Commission, New Delhi to the Additional

Bench-I, Income Tax Settlement Commission, New Delhi. The aforesaid writ petition may have a

material adverse effect on the position of our Company, which we are unable to ascertain as of date of

this Red Herring Prospectus. For details, please see section entitled ―Outstanding Litigation and

Material Developments‖ on pages 418. There can be no assurance that the Settlement Commission will

accept the settlement terms proposed by our Company, Dilip Suryavanshi and Seema Suryavanshi, and

that there will be no additional tax liability imposed on our Company, Dilip Suryavanshi or Seema

Suryavanshi. Further, there can be no assurance that any settlement order passed by the Settlement

Commission will not be challenged by the Income Tax department. Any adverse determination in such

proceedings may have a material adverse effect on our financial condition, cash flows, and results of

operations.

4. Our contingent liabilities that have not been provided for could adversely affect our business, cash flows, financial condition and results of operations.

We usually need to provide performance guarantees when we undertake construction projects, which

are often demanded by our clients to protect them against potential defaults by us. We are also often

required to have our lenders issue letters of credit in favour of our suppliers for purchases of equipment

and raw materials. We thus may have substantial contingent liabilities from time to time depending on

the projects we undertake and the amount of our purchases. As of March 31, 2016, the following

contingent liabilities, on an unconsolidated and on a consolidated basis, were not provided for in our

Restated Financial Statements:

(` in million) As of March 31, 2016

(on a consolidated basis)

As of March 31, 2016

(on an unconsolidated

basis)

Income Tax matters Nil Nil

17

As of March 31, 2016

(on a consolidated basis)

As of March 31, 2016

(on an unconsolidated

basis)

Sales Tax/VAT/Other Indirect Taxes matters (Appeal

filed for the year 2008-09)

15.66 15.66

Corporate guarantee given by our Company to banks

for facilities provided to subsidiary companies.

3,985.04 3,985.04

Bank guarantees issued by bankers in favor of third

parties.

22,081.30 22,081.30

Claims against our Company not acknowledged as

debts

365.27 365.27

Liability arising on account of application made to

the Income Tax Settlement Commission

Amount not

ascertainable

Amount not

ascertainable Note: Future cash outflows, if any, in respect of the above are dependent upon the outcome of future events, etc. Our Company

does not expect any reimbursements in respect of above contingent liabilities.

The aggregate contingent liabilities (to the extent ascertainable) were ` 26,447.27 million and ` 26,447.27 million as compared to a net worth of ` 10,012.73 million and ` 10,925.11 million on a restated consolidated and unconsolidated basis, respectively, in each case as of March 31, 2016. The

contingent liabilities as on March 31, 2016 were 264.14% of consolidated net worth and 242.08% of

unconsolidated net worth.

If a project is not completed or the required payments are not made on time, the relevant performance

guarantees or letters of credit may be enforced. If any of these contingent liabilities materialize, we

may have to fulfil our payment obligations, which may have an adverse impact on our cash flows,

financial conditions and results of operations. For further details, see the section entitled ―Financial

Statements‖ on page 228.

5. Projects included in our order book and our future projects may be delayed, modified or cancelled for reasons beyond our control which may materially and adversely affect our business, prospects,

reputation, profitability, financial condition and results of operation.

As of March 31, 2016, our order book was ` 107,787.31 million. Our order book sets forth our expected revenues from uncompleted portions of the construction contracts received. However, project

delays, modifications in the scope or cancellations may occur from time to time due to either a client‘s

or our default, incidents of force majeure or legal impediments. For example, in some of our projects,

we or our clients are obliged to take certain actions, such as acquiring land, securing right of way,

clearing forests, securing required licenses, authorizations or permits, making advance payments or

opening of letters of credit or moving existing utilities, which may be delayed due to our client‘s non-

performance, our own breaches or force majeure factors. In an EPC project, we may incur significant

additional costs due to project delays and our counterparties may seek liquidated damages due to our

failure to complete the required milestones or even terminate the construction contract totally or refuse

to grant us any extension. The schedule of completion may need to be reset and we may not be able to

recognize revenue if the required percentage of completion is not achieved in the specified timeframe.

In a BOT project, such delays may result in our payment of damages to the other parties, the client‘s

invocation of our performance security and consequential delays in our receipt of annuities and/or

collection of tolls in our BOT projects.

We may not have the full protection in our construction contracts or concession agreements against

such delays or associated liabilities and/or additional costs. Further, we have escalation clauses in some

of our contracts, which, may be interpreted restrictively by our counterparties, who may dispute our

claims for additional costs. As a result, our future earnings may be different from the amount in the

order book. Our contracts may be amended, delayed or cancelled before work commences or during the

course of construction. Due to unexpected changes in a projects scope and schedule, we cannot predict

with certainty when or if expected revenues as reflected in the order book will be achieved. In addition,

even where a project proceeds as scheduled, it is possible that contracting parties may default and fail

to pay amounts owed or receivables due. If any or all of these risks materialize, our business, prospects,

reputation, profitability, financial condition and results of operation may be materially and adversely

affected.

6. If we are not successful in managing our growth, our business may be disrupted and our profitability may be reduced.

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We have experienced high growth in recent years and expect our businesses to continue to grow

significantly. We achieved a CAGR of 38.18% of revenue growth on a consolidated basis for the five-

year period ended March 31, 2016. Our future growth is subject to risks arising from a rapid increase in

order volume, and inability to retain and recruit skilled staff. Although we plan to continue to expand

our scale of operations through organic growth or investments in other entities, we may not grow at a

rate comparable to our growth rate in the past, either in terms of income or profit.

Our future growth may place significant demands on our management