Yogesh Jain, managing director, PNC Infratech Limited said, "The company would use Rs 150 crore raised from the public offering to fund working capital requirements besides setting aside Rs 35.2 crore to repay certain part of the debt. We also plan to invest Rs 65 crore in subsidiary PNCRHPL for part-financing the Raebareli-Jaunpur project besides planned investment of Rs 103 crore in capital equipment."
The company, which specialises in construction of highways, bridges, flyovers and airport runways, is making a public issue of 12,921,708 equity shares of the face value of Rs 10 each, including a share premium per equity share.
"The offer comprises a fresh issue to the public of up to 1.15 crore equity shares by the company and an offer for sale of up to 14,21,708 equity shares by the selling shareholder, Jacob Ballas India, which is divesting its 25 per cent stake," said Pradeep Kumar Jain, chairman and managing director, PNC Infratech Limited.
The price band is fixed from Rs 355 to Rs 378 per equity share. The infrastructure-firm would raise around Rs 488 crore at the upper end of the price band and Rs 456 crore at the lower end.
The firm has executed projects, including highways, bridges, flyovers, power transmission lines,airport runways, development of industrial areas, among others. It provides Engineering Procurement Construction (EPC) services on a fixed-sum turnkey basis as well as on an item rate basis for various infrastructure projects.
The firm has an order book in terms of value of contract including escalation of Rs 6,072.3 crore as on June 30, 2014. Majority of the projects relate to road construction followed by power transmission and distribution, airport runways and water supply infrastructure.