Patel Eng announces public issue of Rs 425 cr
New Delhi, May 2: Patel Engineering Ltd, a construction firm has today announced a follow-on public offer of Rs 425 crore, which will be pumped into various Indian infrastructure projects in the next five years.
The offer comprises fresh isssue of equity shares of Re 1 each at a premium, with a price band of Rs 400-440. The price is to be discovered through a hundred per cent book building process.
The follow-on offer, which includes a net issue to the public of 403.75 crore and a and reservation for existing retail shareholders of existing shareholders of 21.25 crore rupees, will open on May 3 and will close for subscription on May 9.
Patel Engineering is raising the funds to make investments of around Rs 8,500 billion in infrastructure projects and capital equipment, repayment of contractee advances/debt and for additional working capital, said a company release.
The greatest beneficiaries of the investments are likely to be construction companies, since civil construction component accounts for around 50 to 65 per cent of the total infrastructure spending, the release added.
Patel Engineering shares were trading at 540 rupees, up 2.2 per cent.
The company's consolidated order book position (the estimated balance value of work) as at December 31, 2005 is Rs 4339 crore, which is 5.58 times the consolidated revenues of the company as on March 31, 2005. The company has been a major player in sectors like hydropower and irrigation. These sectors account for 39.18 per cent and 37.64 per cent respectively of the consolidated order book as at December 31, 2005, the release pointed out.