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Construction company PNC Infratech on Wednesday announced that it will be issuing 1.29 crore shares to the public through an initial public offer (IPO) next month. The company plans to raise about Rs 450-490 crore. Private equity firm Nylim Jacob Ballas India will sell shares worth around Rs 55 crore, according to a statement issued by the company. The issue is open to the public from May 8. The company will use the money to pay off debt, fund working capital requirements, investment in capital equipment, part-financing of a project undertaken by its subsidiary as well as general corporate purposes.
PNC is involved in infrastructure projects, including highways, airport runaways and power transmission lines. It had revenues of Rs1,326.37 crore and profit after tax of Rs 62.43 crore for the nine-month period ending December 2014. The corresponding figures are Rs1,364.23 crore and Rs 51.96 crore for the full financial year ending in March 2014.
ICICI Securities and IDFC Securities are the managers to the issue. Venkatraghavan S, director at IDFC Investment Banking, expressed confidence about the prospects of the offer. Ajay Saraf, executive director at ICICI Securities, said there has been appetite for infrastructure scrips in recent times as seen through the qualified institutional placements during April.
The company had a total order book of Rs 7,849.7 crore, according to its statement.
