R.P.P. Infra Projects Limited, a construction company engaged in the business of infrastructure development such as Highways, Roads and Bridges, has received SEBI nod for its proposed IPO.
The Company proposes to enter the capital markets with a public issue of 65,00,000 equity shares of Rs. 10 each through a book building process. The Issue comprises of a fresh issue of 61,00,000 equity shares by R.P.P. Infra Projects Ltd and an offer for sale of 4,00,000 equity shares by the Promoters. The Issue will constitute 28.76% of the post issue paid-up capital of the Company and the net issue will constitute 26.99% of the post issue paid-up capital of the Company. VC Corporate Advisors Private Limited, Kolkata is the Book Running Lead Manager to the Issue.
The Company proposes to deploy the net proceeds of the Issue for investment in SPVs for BOT projects, meeting capital expenditure requirement, funding margin requirement for working capital and meeting general corporate expenses.
About R.P.P. Infra Projects Ltd: The Company was incorporated in 1995 and since incorporation has executed over 200 civil construction projects across various segments of construction and infrastructure industry. The Company has diversified its civil work expertise into SEZ Development, Water Management projects, Irrigation and Power Projects. It is doing business in the South Indian region, covering states of Karnataka, Andhra Pradesh, Tamil Nadu and the Union Territory of Andaman Nicobar Islands. The Company has recently entered the Srilanka market and currently executing project in the Railway sector.
The Company’s total income for FY 2007-08 was Rs. 72.14 crore and net profit at Rs. 3.93 crore, for FY 2008-09 the total income was Rs. 101.23 crore and net profit at Rs. 3.33 crore and for FY 2009-10 the total income was Rs 146.89 crore and net profit at Rs. 8.26 crore.
Disclaimer:
Investors should note that investment in equity shares involves a high degree of risk and for details relating to the issue, see the section titled “Risk Factors’’ of the Draft Red Herring Prospectus.
This press release does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any equity shares, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.
The company is proposing to make a public issue of its equity shares and has filed a DRHP, which is available on the website of SEBI at www.sebi.gov.in, website of the Company at www.rppipl.com and website of BRML at www.vccorporate.com.
