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Sadbhav Infrastructure Project IPO opens on 31 August 2015

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Capital Market
Last Updated : Aug 31 2015 | 4:28 PM IST

IPO price band fixed at Rs 100 to Rs 103 per share

Sadbhav Infrastructure Project (SIPL) is coming up with an initial public offer (IPO), which includes a fresh issue of equity shares aggregating upto Rs 425 crore and an offer for sale of 64.71 lakh shares from two existing shareholders viz. Xander Investment Holding XVII and Nonvest Venture Partners VII-A-Mauritius. These two selling shareholders have put on block 32.35 lakh shares each. The IPO opens for bidding on Monday, 31 August 2015, and closes on Wednesday, 2 September 2015. The price band for the IPO has been fixed at Rs 100 to Rs 103 per share.

Promoted by Sadbhav Engineering (SEL) and Vishnubhai Patel, SIPL was established to undertake roads, highways and related projects on a build-operate-transfer (BOT) basis for the Sadbhav group. The company's specialization is in development, operation and maintenance of highways, roads and related projects. The company intends to use about Rs 264.80 crore from proceeds of the IPO for repayment and pre-payment of loans availed from ICICI Bank and from SEL. An amount of Rs 82 crore will be deployed towards equity investment and for advancing of sub-ordinate debt to subsidiary Shreenathji-Udaipur Tollway for part-financing of the project. The remaining funds will be used for general corporate purpose.

On consolidated basis, Sadbhav Infrastructure Project reported net loss of Rs 301.56 crore in the year ended 31 March 2015 (FY 2015), higher than net loss of Rs 155.94 crore in the year ended 31 March 2014 (FY 2014). Total sales rose 34.82% to Rs 500.30 crore in FY 2015 over FY 2014.

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First Published: Aug 26 2015 | 5:29 PM IST

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