Lanco Infratech Ltd to tap markets with IPO

The IPO of Lanco Infratech Ltd opens on November 6, 206. The company is issuing 4,44,72,381 equity shares of Rs.10 each at a price band of Rs.200 to Rs.240 per share to be decided through 100% Book Building process.

The issue opens on November 6, 2006 and closes on November 10, 2006. The minimum order quantiy is 25 shares and further lot should also be in multiples of 25 shares.

The issue comprises a net issue to the public of 43,972,381 equity shares of Rs.10 each and a reservation for eligible employees of up to 500,000 equity shares of Rs.10 each at the issue price. The issue will constitute 20% of the fully diluted post issue paid-up equity capital of the company. The net issue would constitute 19.78% of the fully diluted post issue paid-up equity capital of the company.

The book running lead managers to the issue are JM Morgan Stanley Private Ltd, Enam Financial Consultants Private Limited, ICICI Securities Limited, Kotak Mahindra Capital Company Limited. The registrar to the issue is Intime Spectrum Registry Limited.

Lanco Infratech is an infrastructure development company in India with interests in power, construction and property development. We currently own 11 power projects (of which five are in operation and six are under development) with current operating capacity of 149.75 MW in operation and 1,260.0 MW under development. We currently own 33.9% of LKPPL, which owns and operates the Kondapalli Power Plant, and have agreed to acquire an additional 25.1% equity stake from Globeleq. We expect to complete the acquisition by the quarter ending December 31, 2006. The Kondapalli Power Plant has an operating capacity of 368.1 MW. We also have a right to subscribe up to 74.0% of the share capital of NPCL upon achieving financial closure of the Nagarjuna Power Project prior to March 31, 2007. The Nagarjuna Power Project is expected to have an operational capacity of 1,015.0 MW. Our power assets consist of gas, bio-mass, hydro, coal (indigenous and imported) and wind-based power plants. We also have interests in power trading in India and commenced power trading operations in January 2006. In the construction business, we have experience in the execution of several power projects, transportation networks, water supply works, and commercial and residential building complexes. These projects include the coffer dam for the Tehri Dam project, the Veeranam Water Supply project, modernisation of an 825-bed hospital for the Indian Navy in Mumbai, a cable-stayed flyover in Navi Mumbai, and construction of the Kondapalli Power Plant and the Aban Power Plant. We are currently involved in construction projects in relation to power projects, highways and a telephone exchange. In the property business, we own or have won bids to develop approximately 19.5 million square feet of saleable area, including a 100.0 acre integrated IT park and township and a 21.8 acre residential development, both located in Hyderabad. Our services cover all stages of development of our projects, including the supervision of construction services, financing and operations.

Company Website: www.lancogroup.com

Source : Equity Bulls

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