J Kumar Infraprojects IPO opens on January 18

Mumbai, January 15, 2008: J. Kumar Infraprojects Limited (“JKIL” or the “Company”), a civil engineering and infrastructure development company with a primary focus on development of roads, flyovers, bridges, railway over bridges, irrigation projects, commercial and residential buildings, railway buildings, sports complexes and airport contracts, is entering the capital market with an Initial Public Offering (“IPO”) of 65,00,000 equity shares of Rs 10 each for cash at a price (“Equity Shares”) to be decided through a 100% Book-Building Process. The Bid/Issue opens on January 18, 2008, and closes on January 23, 2008. The Company has fixed the Price Band between Rs 110 and Rs 120 per Equity Share.

The Issue comprises a Net Issue to the Public of 63,00,000 equity shares (the “Net Issue”) and a reservation of up to 200,000 shares for eligible employees of the Company (“Employee Reservation Portion”). The Issue will constitute 31.36% and the Net Issue will constitute 30.40% respectively of the fully diluted post Issue paid-up capital of the Company. The Equity Shares issued through the Red Herring Prospectus (“RHP”) are proposed to be listed on the Bombay Stock Exchange Ltd. (“BSE”) and the National Stock Exchange of India Ltd. (“NSE”).

As on November 30, 2007, the Company’s order book, which includes some uncommenced projects and the unfinished and uncertified portions of the commenced projects, was Rs 461.15 crore. The proceeds from this Issue are intended to be deployed for the purchase of capital equipments and for funding working capital requirements.

The Company’s core areas of expertise in the construction of infrastructure projects include: Transportation Engineering, Civil Construction, Irrigation Projects and Piling work using hydraulic piling rigs. It has been most active in Mumbai, Pune, Aurangabad and Vidharbha region of Maharashtra. It has been awarded contracts by various authorities including: Maharashtra State Road Development Corporation Limited, Mumbai Metropolitan Regulatory Development Authority, Pimpri Chinchwad Municipal Corporation and Mumbai Rail Vikas Corporation in addition to several private sector companies such as Indiabulls Real Estate Company Private Limited and SMC Infrastructures Private Limited amongst others.

The Promoters and the experienced core team have got a past experience of over 2 decades in execution of different type of civil engineering projects. The Company has a large fleet of self-owned machineries and equipments. This includes Hydraulic piling rigs HR 180 and HR 130, Putmiester Mobile boom placer concrete pump and Stationery concrete pumps, RMC plants, Transit mixers, various capacity Cranes, Poclains, Front End Loaders, Back Hoe Loaders, Trucks and Tippers, etc., and a large quantity of Shuttering and Centering plates.

The Company has the ability to execute projects within stipulated time. Over the years, it has executed complex projects prior to the scheduled completion date and earned bonus for early completion. For example, it completed the construction of flyover, slip roads and allied works at Seven Hills Chowk, Aurangabad, 19 days ahead of scheduled date of completion with bonus for early completion. It was awarded with Rs 19 lakh for completing the given project 19 days in advance. Similarly, it completed the pedestrian subway work at Rajaram Nagar near Santacruz, Mumbai, 67 days ahead of the stipulated time limit with bonus for early completion.

The Company’s income from operations has increased by a CAGR of 234.35% over the last 3 full financial years and its profit after tax has increased by a CAGR of 471.51% over the same period. The Company posted a total income of Rs 113.36 crore and a profit after tax of Rs 8.01 crore in fiscal 2007. For the six months ended September 30, 2007, its total income was Rs 82.36 crore and the profit after tax was Rs 7.99 crore.

The sole Book Running Lead Manager (“BRLM”) to the Issue is Anand Rathi Securities Limited.

Source : Equity Bulls

Keywords