Chennai-based SAAG RR, an infrastructure service provider and a subsidiary of SAAG Consolidated of Malaysia, is planning to raise Rs 100 crore by way of rights issue or other funding options, to meet its requirements including working capital and future growth plans.
“We are looking at various options including private placement, rights issue or raising funds from strategic investors to meet the requirement. We have not finalised anything yet,” said Anand Subramanian, executive director and group CEO of SAAG Consolidated of Malaysia.
The company received approval from its shareholders authorising the board of directors to raise the fund through various options in its 16th Annual General Meeting held on September 26, 2011.
The company is planning to strengthen its base in urban transport infrastructure segment with focus on Tamil Nadu. “By procuring orders for tramways, we have a significant presence in this segment and will use it as an opportunity to position ourselves in the future biddings,” said Subramanian.
Last year, the company posted a loss since the new projects were not taken off and certain contracts delayed. However, it has a strong order book for current fiscal, which would reduce the loss and reflect some of the income from this in the balance sheet by end of March 2012, he said. It has posted a turnover of Rs 12.9 crore and loss of Rs 8.89 crore, in 2010-11.
The company has secured its highest ever order book of around Rs 400 crore in the year 2010-11. Its subsidiary OGS Asiapac Ltd, Mauritius has won an EPCC contract of Rs 350 crore from MRails, Malaysia. The contract is for design, engineering, procurement and commissioning of 40 KM tramway at Malacca, Malaysia.
The company also received a letter of award for Rs 42 crore projects from Garisan Etika Bangladesh pvt Ltd, as a subcontactor for civil, preliminaries and mobilisation work for 2X36 MW combined cycle power plant.
In India, the company received Rs 14.30 crore from Cordon Bleu Properties and Infrastructures for civil and structural works for a project at Saravanampatti, Coimbatore and Rs 6.5 crore from ETA Star Tech City (P) Ltd in connection with development of three blocks of the latter's residential project in Sriperumbudur, Chennai.
The company is in correspondence with ONGC to put its oil and gas project on place. It is planning to submit the utilisation details asked by ONGC for deployment of offshore modular work over rig SAAG Pacific.
It has not received any communication from ONGC after the last extension on April 30, 2010. The company is positioning itself for all future tenders in the work over rig sector, according to the company officials.
It is planning to restructure its finances by infusion of long term funds with the aim of substantially reducing bank borrowing and interest costs. A proposal in this regard is under discussion with its bankers.
