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Wednesday, April 18, 2007

Simplex Projects plans IPO

Simplex Projects, an ISO 9001-2000 certified construction company, engaged in integrated engineering, procurement and construction services including specialised pile driving, is coming out with an IPO and has already filed the draft red herring prospectus with SEBI for issue of 30 lakh equity shares of face value of Rs 10.

UTI Securities has been appointed as the book-running lead manager for the issue.

B K Mundhra, chairman and managing director of Simplex, told that the basic objective was to augment long- term working capital requirements, besides acquisition of plant and machinery. He said funds would be needed for purchase of design and technology for semi- and fully-automated multi-level car parking systems and purchase of prototypes, an area in which the company is now developing huge expertise.

He said the company is already handling new construction projects in the North East (hospitals, market complexes and sewerage projects) especially in Assam, Manipur and Sikkim.

Retail parking space

Pradeep K Mishra, senior V-P (Finance & Accounts), said the company has planned to enter the retail parking space in a big way and has already signed a joint venture with a Korean company for the purpose. He said Simpark Infrastructure, the wholly owned subsidiary of the company for parking systems, intends to deploy some Rs 1 crore for marketing and promotion of semi-automated parking systems.

The semi-automatic system, technically labelled as Empty Square System or Puzzle Parking Technology, according to the company official, would provide independent parking spaces for cars in private buildings.

The system is for a maximum of 50 cars in a single module, and can be laid out in a maximum of 5 levels. He said it was adaptable to individual small project requirements.

According to the prospectus, Simplex proposes to invest Rs 6 crore of the net proceeds of the issue in Simpark Infrastructure by way of subscription to the equity capital of the subsidiary, reports The Hindu Business Line.

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