SEVEC Contructions' IPO to open on Feb 4

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Mumbai, Jan 28 (UNI) Hyderabad-based SVEC Constructions is entering the capital market with an Initial Public Offering (IPO) of 40,00,000 equity shares of Rs ten each on February 4, with a price band of Rs 85 to Rs 95 per equity share.

The issue size will be Rs 34 crore at the lower end of the price band and Rs 38 crore at the upper end of the price band.

The issue will close on February 8.

Company Managing Director Ajad Kumar, speaking to reporters here today said, ''The company, which has a 22-year proven construction experience in the areas of building and irrigation works, proposes to deploy funds for the purchase of capital equipment worth Rs 15.32 crore and for meeting the long term working capital requirement estimated at Rs 23.86 crore.'' ''As the Company is engaged in the infrastructure and public works related areas of business, it needs to buy equipment on a regular basis. It has already bought equipment worth Rs 24.69 crore in the past 30 months. Now it needs to buy equipment worth Rs 15.32 crore for the construction of buildings, canals and roads as it will improve productivity of the Company and at the same time reduce the dependence on hired equipment,'' Mr Kumar informed.

The equipment to be acquired include concrete batch plant, portable concrete pump, transit mixer, dumpers, wheel mounted crushing plants, tower crane and wet mix plant.

UNI AR NM SKB1535

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