CCCL to hit capital market by month-end

Consolidated Construction Consortium Ltd (CCCL), a Chennai-based integrated turn-key construction services company, will be filing a red herring prospectus (RHP) soon for its forthcoming IPO by the end of the month.

CCCL will be issuing around 37 lakh shares of which 16 per cent will be offered to qualified institutional buyers (QIBs). The company is expecting to hit the capital market in the last week of August or the first week of September 2007.

Talking about the entry into the capital market, S Sivaramakrishnan, managing director of CCCL said, "We had filed the DRHP on May 30 and got the SEBI nod last week. We will be hitting the capital market hopefully in the last week of the month or first week of September with an IPO of 37 lakh shares."

Sivaramakrishnan informed that the proceeds of the IPO would go for acquiring plant and machinery, other construction and infrastructure equipment, apart from repayment of certain loans.

The company has its operations in industrial, commercial, infrastructure and residential sectors, with presence in 17 states across the country as well as in Gulf countries.

Among 60 of its ongoing projects, four of them are of commercial and residential projects in Dubai. CCCL has an overall order book of Rs 1,860 crore spanning 42 million sq ft with a completion target of 12-15 months.

According to Sivaramakrishnan, CCCL is also developing a food processing special economic zone in south. Spread across an area of 600 acres, the SEZ will be developed at a project cost of Rs 480 crore.

In the coming 8-9 months, the company is also planning to bid for the developing 33 non-metro airports announced by the government. It is also simultaneously developing IT SEZs in Bangalore, Chennai, Noida and Hyderabad.