Mumbai based Relcon Infraprojects Limited has informed the share market(BSE/NSE) that they have planning to enter capital markets with its initial public offer (IPO) of 4000000 shares of Rs 10 each. The issue comprises a reservation for eligible employees of upto 60,000 equity shares. It will constitute 30.77% of the fully diluted post issue paid up capital of company. The company has filed a Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) for the same. The premium to be decided via 100% book building process. The IPO price band has not been decided yet. Relcon InfraprojectsPrime Limited is an infrastructure development and construction company with backward integration into manufacturing of ready mix concrete and quarrying activities. Company also operates asphalt batch mix plant, drum mix plant, wet mix plant and crushers.
The proceeds of the IPO will be used by the company for purchase of equipments for expanding infrastructure development and construction business, setting up of three ready mix concrete plants, one asphalt batch mix plant, two wet mix plants and one crushing plant for strengthening in-house sourcing of raw materials; and working capital requirement.
Relcon Infraprojects Limited may also consider pre-IPO placement of up to 500000 equity shares aggregating up to Rs 10 crore.
The equity shares of the company are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
The Sole Book Running Lead Manager to the Issue is SREI Capital Markets Limited.
The company has reported a consolidated net profit after tax of Rs 9.5 crore and total income of Rs 151.07 crore for the period of six months ended on September 2010.
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