Financial Daily from THE HINDU group of publications
Wednesday, Mar 16, 2005
Markets - Public Offer
IVRCL public issue from March 18
(From right) Mr E. Sudhir Reddy, Managing Director, IVRCL Infrastructure & Projects Ltd, with Mr R. Balarami Reddy, Director-Finance, and Mr S. Ramachandran, President, at a press conference in Mumbai on Tuesday. - Paul Noronha
Mumbai March 15
IVRCL Infrastructure and Projects Ltd is entering the capital market with a public issue of face value Rs 10 to raise Rs 126 crore, with a green shoe option of 18.9 crore. The issue opens on March 18 and closes on March 23.
The number of shares to be issued and the issue price will be determined through the book-building process. The price band for the issue will be Rs 385-415 per equity share of face value Rs 10 each.
Up to 50 per cent of the issue will be offered on a discretionary basis to qualified institutional buyers and not less than 25 per cent will be available for allocation on proportionate basis to non-institutional bidders and the rest for allocation on a proportionate basis to retail individual bidders.
Mr E. Sudhir Reddy, Vice-Chairman and Managing Director of the company, told presspersons here on Tuesday that the proceeds of the issue would be used for investments in BOT/BOOT projects, purchase of capital equipment and repayment of debt.
The estimated fund requirement for investment in BOT/BOOT projects is Rs 40 crore, purchase of capital equipment Rs 30 crore and repayment of debt/loan Rs 49.7 crore.
Engaged in the construction of roads, highways, oil & gas pipelines and water projects, the company currently has an order book aggregating about Rs 2,545 crore.
"Our focus continues to be on water projects, which constitute 65 per cent of our orders," Mr Reddy pointed out.
In the first six months of the current fiscal, the company's total income was Rs 423 crore.
On the company's business strategy, he said efforts were being made to gain access to complex projects, including LSTK projects in roads, buildings and power transmission.
"We shall also pursue options in operations and maintenance projects in water and environmental areas," he said.
Mr Reddy said the company was planning to foray into overseas projects, having identified some water projects in Oman and Sri Lanka. The company is among the four in the race for the Rs 800-crore de-salination project in Tamil Nadu.
"We see more such projects coming up in different coastal States that are facing water shortage," he said.
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