KNR Constructions Limited IPO Message Board (Page 3)

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KNR Constructions enters equity market

KNR Constructions, an infrastructure project development company providing engineering, procurement and construction services across various fast growing sectors; viz., roads & highways, irrigation and urban water infrastructure management, will enter the capital market soon with an initial public offering (IPO) of 7,874,570 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process.

The issue comprises a net issue to public of 7,734,570 equity shares of Rs 10 each and a reservation of upto 140,000 equity shares of Rs 10 each for cash at a premium. The issue and the net issue will respectively constitute 28.00% and 27.50% of the fully diluted post-issue equity share capital of the company.

The equity shares are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.

The proceeds from this issue are intended to be deployed for further equity investment in BOT projects, purchase of capital equipment and for meeting working capital requirements.

As on June 30, 2007, it has 24 projects on hand across various states in India covering Uttar Pradesh, Madhya Pradesh, Assam , Andhra Pradesh, Karnataka, and Tamil Nadu.

The estimated unexecuted order book position as at June 30, 2007 was Rs 12,729.84 million, which is approximately 4 times the operational income of FY 2006-07 on consolidated basis. The company's operating income (consolidated) increased to Rs 3, 244.16 million in Fiscal 2007 as compared to Rs 1,293.26 million in Fiscal 2005. Its restated profit after tax (consolidated) increased to Rs 202.64 million in Fiscal 2007 as compared to Rs 46.74 million in Fiscal 2005.

The company has successfully completed major projects such as: a) the four-laning of NH-24 from Km.27.643 to 48.638 and construction of the Hapur Bypass in Uttar Pradesh; b) rehabilitation and upgrading of Surat-Manor section of NH-8 (Gujarat); c) widening to 4 lanes and rehabilitation of existing 2-lane carriageway of Krishnagiri-Vaniyambadi section of NH-46 (Tamil Nadu); d) widening to 4/6 lanes and strengthening of the existing 2-lane carriageway of NH-5 in the state of Andhra Pradesh from km.178.00 to 222.00 (Nellore-Kavali) in Andhra Pradesh; and e) major maintenance works under Uttar Pradesh State Road from Azamgarh to Ghazipur.

The book running lead manager to the Issue is Axis Bank Limited.