Patel Engineering completes QIP issue raising Rs 344.323 crore

October 22, 2009 - Mumbai: Patel Engineering Ltd, a construction company specialising in hydro-power generation and irrigation segments, today announced that the company has raised Rs 3443.23 million through the fresh issue of shares to qualified institutional buyers (QIBs) at a price of Rs 477.03 per share.

The issue was lead managed by Daiwa Securities SMBC India Private Limited, Axis Bank Limited, Nomura Financial Advisory & Securities (India) Private Limited, Kotak Mahindra Capital Company Limited, and Antique Capital Markets Limited.

Mr. Rupen Patel, Managing Director, Patel Engineering, "The funds raised would be used for various expansion plans of the company, its subsidiaries, joint ventures and other bodies corporate where the company may hold a stake, meet long-term working capital requirements, repay debts and for any other permissible uses"

Patel Engineering's present core operations are in the areas of building hydro-power plants, irrigation dams and urban infrastructure. As on June 30, 2009, company had an consolidated order book of Rs 73,495.20 million. It has bid for projects of approximately Rs 9,572.5 crore of which hydro power projects constitutes 92.80%.

Meanwhile, it is also scaling up its asset ownership business in power and real estates. In its power vertical, it is in process of setting up a 1,320 MW thermal power plant at Nagapatnam District in Tamil Nadu and 90 MW hydro power project at Gongri, Arunachal Pradesh.

The company has a historical land-bank of over 1,100 acres in various states. We have developed a commercial office, "Patel Corporate Park" located in Mumbai. Further, Patel Realty (India) Limited has, through two of its wholly owned subsidiaries received formal approval from the Ministry of Commerce and Industry, Department of Commerce, SEZ secttion for setting up two IT and ITES SEZ projects on land measuring 63.01 acres and 25.37 acres respectively.

The stock was trading at Rs.480.25, up by Rs.1.95 or 0.41%. The stock hit an intraday high of Rs.486.70 and low of Rs.474.05.

The total traded quantity was 22583 compared to 2 week average of 73659.

Source : Equity Bulls

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