Patel Engineering's FPO to open on May 3

Mumbai, Apr 24 (UNI) Patel Engineering Ltd, a civil-infrastructure company, is scheduled the open the subscription of its Follow-on Public Offer (FPO) on May 3 for fresh equity shares of Re 1 each for cash at a premium to be determined through cent per cent book building process.

Announcing this, Managing Director Rupen Patel said the company is raising funds to make investments in infrastructure projects and capital equipment, repayment of contractee advances/debt and for additional working capital. It also intends to bid for projects on Annity, BOT (build operate transfer) and BOOT (build own operate transfer) basis and also to invest in subsidaries and joint ventures within and outside India.

Studies and estimates from the plan documents indicate an investment of over Rs 8,500 billion into various infrastructure projects over the next five years, he said and added, ''The biggest beneficiairies of these investments are likely to be construction companies since civil construction companies accounts for around 50-65 per cent of the total infrastructure spending.'' Further, Mr Patel said the company has seen a huge jump in order book position in the last two years on the back of increased infrastructure spending. The company would like to further capitalize and benefit from the growth momentum, he said, adding that the fund raising program will facilitate the company's structured growth plan for expansion through organic and inorganic means.

The company's consolidated order book position as on December 31, last year is Rs 4,339 crore, which is 5.58 times the consolidated revenues of the company as on March 31, last year.

ICICI Securities and Enam Financial Consultants are the Book Running Lead managers to the FPO, while Intime Spectrum Registry is the Registrar to the FPO.

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