Indian IPO

All details about Hot Indian Primary Market.

Wednesday, January 10, 2007

Afcons Infrastructure files DRHP with Sebi

Afcons Infrastructure, a Shapoorji Pallonji Group Company, engaged in civil engineering and construction work in India, has filed its draft red herring prospectus, DRHP with the Securities and Exchange Board of India, Sebi, yesterday with a proposal to enter the capital market with its initial public offering, IPO of equity shares, as per press release.

The company proposes to offer 1,60,65,000 equity shares of Rs 10 each for cash at a premium. The issue comprises a net issue of 1,57,43,700 equity shares to the public and a reservation of 3,21,300 equity shares for eligible employees. The issue would constitute 18.37% of the post issue paid up capital of the company. The net issue constitutes 18% of the post Issue paid up capital of the company.

The issue is being made through 100% book building process wherein at least 60% of the net issue shall be allocated on a proportionate basis to QIB Bidders. 5% of the QIB portion shall be available for allocation on a proportionate basis to mutual funds only, and the remainder of the QIB portion shall be available for allocation on a proportionate basis to all QIB bidders including mutual funds.

Further, not less than 10% of the net issue shall be available for allocation on a proportionate basis to non-institutional bidders and not less than 30% of the net issue shall be available for allocation on a proportionate basis to retail individual bidders. The company has not opted for IPO grading of this offer.

Afcons Infrastructure, a civil engineering and construction company in India, is the flagship infrastructure construction company of the Shapoorji Pallonji Group, a well known and reputed name in the construction industry. The company’s experience in construction industry includes a wide variety of infrastructure projects like marine works, bridges, flyovers, roads, general civil engineering work including industrial structures, nuclear power projects, tunneling, pipelines etc.

The company has successfully executed more than 150 structures along the Indian coastline. The company has also successfully completed more than 100 bridges, flyovers, viaducts, two LNG storage tanks, underground and elevated train corridors and has executed 2000 lane kilometers of road works.

The company intends to use the proceeds of the IPO for the purposes of purchasing capital equipment, repayment of debt; general corporate purposes and strategic initiatives.

The company proposes to list its equity shares on the National Stock Exchange and the Bombay Stock Exchange.

The book running lead manager to the issue is Enam Financial Consultants and the co-book running lead managers are CLSA India, JM Morgan Stanley and SBI Capital Markets.

0 Comments:

Post a Comment

<< Home