RPP Infra Projects is entering the capital market with a public issue of 61 lakh equity shares and an offer for sale of four lakh shares of Rs.10 each through a 100 per cent book building process. The issue will open on November 18 and close on November 22.
Addressing presspersons here on Wednesday, R. P. Arulsundaram, Managing Director, said the company would deploy the net issue proceeds in special purpose vehicles (to be created) for projects on the build operate and transfer (BOT) mode and in capital equipment besides working capital. The price band had been fixed at Rs.68-75. He said the company had so far executed over 200 civil construction projects across various segments of the construction and infrastructure industry. It diversified into SEZ development, water management, irrigation and power projects.
Mr. Arulsundaram said the company had an order book of Rs. 613 crore as of June 30, 2010, comprising 47.57 per cent of building projects, 24.35 per cent of water management projects, 16.32 per cent of SEZ development and 5.82 per cent of irrigation projects and 5.95 per cent of power projects. The company would shift its focus towards high margin BOT projects in the coming years, he said.
