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Tuesday, August 29, 2006

Atlanta IPO opens on Sept 1

Atlanta, the company in the business of construction, infrastructure and mining, is coming out with an initial public offering of 43 lakh equity shares of Rs 10 each through a 100% book building process, reports The Hindu Business Line.

The issue opens on September 1 and closes on September 7. The price band has been fixed between Rs 130 and Rs 150 a share.

The net issue to the public will be 41 lakh equity shares with the rest being set aside for employees.

The company proposes to utilise part of the net proceeds of the issue for investing in Balaji Tollways, a SPV set up for the execution of the Nagpur-Kondhali four-lane BOT project.

Atlanta in a joint venture with SREI Infrastructure Finance, had bid for "improvement, operation and maintenance including strengthening and widening of the existing 2-lane road to 4-lane dual carriageway from 9.2 km to 50 km on the NH-6 (Nagpur-Kondhali section) in Maharastra." Of the proceeds of the issue, around Rs 42.92 crore (Rs 429.2 million) will be invested in the equity capital of the SPV. At present, Atlanta holds 34% and SREI Infrastructure Finance 26% of the paid-up capital in the SPV. Individuals forming part of the promoter group of Atlanta hold rest of the equity. Subsequent to this investment, Atlanta's shareholding in the SPV will increase to 74%.

At a press meet, Rajhoo Bbarot, managing director, Atlanta, said: "There has been no delay in the projects because of this IPO." However, the company's prospectus mentions, "there has been a delay in commencement of our schedule for the proposed project."

The net profit after tax has gone up from Rs 2.41 crore (Rs 24.1 million) to Rs 15.56 crore (Rs 155.6 million) between 2001-02 and the year ended March 31, 2006.


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