IRCON International IPO: State-run railway firm IRCON international has come out with its public offer, in which the government looks to raise up to Rs 467 crore. Notably, IRCON is involved in engineering and construction businesses. The company receives nearly 87% of its orders from the Ministry of Railways. IRCON provides EPC services on a fixed-sum turnkey basis as well as on an item-rate basis for various infrastructure projects. Even as investors mull whether to subscribe to IRCON International IPO, we take closer look at 5 important details, and what brokerages have to say. Issue details In the IRCON IPO, 99.1 lakh shares are on offer. The firm has set a price band of Rs 470-475. The issue will remain open till September 19th. IRCON International is offering a 10% discount to retail investors and eligible employees. The IPO is part of the government\u2019s divestment programme for the year. Financials As of March 31, 2018 IRCON\u2019s net worth stood at about Rs 3,762 crore. The cash balance was at about Rs 1,200 crore. In FY18, IRCON has acquired debt of Rs 3,203 crore from the Indian Railway Finance Corporation at interest rate of 8.77%, to pay upfront lease premium to Rail Land Development Authority (RLDA) for the acquisition of a project site. Strengths Brokerages point out that the firm has a strong order book (Rs 22,406.8 crore as of March 2018), excellent execution track record, healthy financials, and enough cash to meet working capital needs. Credit profile According to a report by HEM Securities, IRCON International has a strong credit profile that includes non-fund based standby bank limits of Rs 3,120 crore out of which Rs 1,665 crore has been utilised. \u201cAccording to CARE, company\u2019s credit rating for long and short term borrowing has been maintained at AAA\/A+ since 2011,\u201d noted the research and brokerage firm. Valuations According to Motilal Oswal, investors can subscribe to the issue for listing gains. The IPO valuation appears decent, given the order book position and financials. \u201cIrcon is trying to improve international business and is planning to diversify to aid growth,\u201d the firm noted.\u00a0The firm is bringing the issue at p\/e multiple of approximately 10.86 on annualized post issue FY18 eps at price band of Rs 470-475 \u201cCompany\u2019s business operates in diverse sectors covering many countries have excellent execution track record through strong operating systems and controls. Company\u2019s order book is robust which gives strong revenue visibility and steady execution. Looking after all above we recommend \u201cSubscribe\u201d on issue,\u201d HEM Securities said in a note.