NCL Buildtek's 2023-24 Expansion For Sustainable Growth

With over 30 years of excellence in delivering high-quality construction and allied materials, NCL Buildtek Ltd. is a recognised player in the industry. As a part of the esteemed ₹3000 crore NCL Group, NCL Buildtek is set to start a journey of expansion and growth in the coming year, 2023-24. With a wide range of upgraded items in its portfolio, including windows, putties, wall paint textures, AAC blocks, and tile adhesives, the company has already had a significant impact on the market in India. In this blog, we are going to discuss how NCL Buildtek hopes to solidify its position in the market further and maintain delivering competence for years to come by building upon its pan-India reach.

NCL Buildtech: A Company Overview

NCL Buildtek Ltd is a player in the construction industry and traces its origins back to 1970, having 53 years of experience. As a public entity, the company is transparent and committed to excellence. With a workforce of 501-1,000 employees in India and a growing global presence, the company stands as an example of success. Headquartered in Hyderabad/Secunderabad, Telangana, India, NCL Buildtek Ltd extends its influence from this central hub. Spearheaded by visionary leadership, the company is all set to expand further in the coming years.

NCL Buildtek Ltd has evolved from its former identity, NCL ALLTEK & SECCOLOR LTD, to diverse divisions, including NCL Coatings, NCL Windoors, NCL Walls, and NCL Services. With a focus on B2B interactions, the company excels as a corporate entity, specialising in products like AAC Blocks, Dry-Mix Mortars, and Tile Adhesives.

NCL Buildtek Raising Funds For Its Business Expansion

NCL Buildtek is gearing up for a significant expansion phase by raising ₹25 Crores through a preference share allotment. As part of the esteemed NCL Group, which encompasses Alltek and Seccolor divisions, NCL Buildtek has a rich legacy dating back to 1979, when Mr Ramachandra Raju founded it. The company has earned a reputable position as India's leading provider of acrylic putties, textures, CCGI windows, fly-ash bricks, UPVC doors, and windows. Expanding its product portfolio over time, the company now includes AAC Blocks, Dry-Mix Mortars, and Tile Adhesives & Flooring segments. Having a diverse range of products, the company also offers its products to other Asian countries.

To drive its ambitious expansion plans, NCL Buildtek has scheduled an extraordinary general meeting, inviting all shareholders to discuss a proposal to raise ₹25 Crores. The company intends to achieve this by issuing optionally convertible debentures (OCDs) with a face value of ₹10,000 each. The investor in this strategic move is NCL Industries Limited, a Promoter Group Company.

Under this plan, each OCD can be converted into 30 equity shares of ₹10 each after three years from the date of allotment. The proposed issue price for each OCD is ₹10,000, and they will be issued as a single piece, with allotment taking place within 60 days from the receipt of application money. Currently, the proposed allottee holds no shares in the company, but upon complete conversion of the debentures, it will hold 6.09% of shares in the post-preferential offer share capital.

This funding strategy marks a significant move towards business expansion for NCL Buildtek and holds the potential to boost the value of NCL Buildtek unlisted shares. Upon conversion, the calculated conversion price per equity share stands at ₹333.33 per share, with a premium of ₹323.33 per equity share, as indicated in the valuation report by M/s KPMG Valuation Service.

With the forthcoming extraordinary general meeting and the visioned expansion plans, NCL Buildtek is on track to achieve greater heights in the construction industry, solidifying its position as a strong identity in India's building and construction background.

How Does Expansion Of NCL Buildtek Affect Its Unlisted Shares?

The expansion journey of NCL Buildtek is set to have an impact on its unlisted shares, bringing potential changes to its overall market presence. Currently, NCL Buildtek unlisted share price stands at INR 245.0 per share, indicating its market value among interested investors.

NCL Buildtek's decision to raise INR 25 Crores through preference share allotment underlines its commitment to growth. This expansion strategy aims to secure a stronger footing in the construction sector. This endeavour is part of the esteemed NCL Group, which includes divisions like Alltek and Seccolor. The company, founded by Mr Ramachandra Raju in 1979, has become a renowned provider of diverse construction materials, including acrylic putties, textures, windows, bricks, doors, and more products.

The company's vision for expansion involves an extraordinary meeting that happened between the board of directors of the company, where discussions revolved around a proposal to raise funds. The mechanism consists in issuing optionally convertible debentures (OCDs), each with a face value of INR 10,000. These debentures would convert into equity shares after three years, granting the investor a stake in the company.

This is an excellent opportunity for investors looking to invest in NCL Buildtek pre-IPO shares, as NCL Buildtek unlisted stocks are likely to increase. For gathering more information or to buy unlisted shares, you can get in touch with us.