Atlanta to enter capital mkt on September 1

New Delhi, Aug 30 (UNI) Atlanta Ltd, engaged in construction, realty, infrastructure and mining businesses, today said it will enter the capital market on September 1 with a public issue of 43 lakh equity shares of Rs 10 each.

''The company proposes to utilise Rs 42.9 crore of the net proceeds of the issue to meet the investment requirements in Balaji Tollways Ltd, a SPV formed for the execution of the Nagpur-Kondhali four lane Built-Operate-Transfer (BOT) project. It has alraedy invested Rs 1.5 crore in the project,'' Atlanta Executive Director (Finance) G Radhakrishnan told reporters here.

The price band for the IPO has been fixed at Rs 130-150 per share. The issue will constitute 26.38 per cent of the post-issue paid up capital of the company and will close on September 7.

Presently, Atlanta holds 34 per cent and SREI Infrastructure Finance Limited holds 26 per cent of the paid up equity capital of the SPV. The remainder of the equity shares of the SPV are held by individuals forming part of Atlanta's promoter group.

Subsequent to this investment, Atlanta's shareholding in the SPV will increase to 74 per cent by virtue of which the SPV would become a subsidiary of the company.

The proceeds will also be utilised to purchase plant and machinery for mining (Rs 8.07 crore) and real estate (Rs 5.5 crore) businesses. The plans also include investments in real estate projects and reducing high-cost debts of the company.

The company's current bid capacity is to the tune of Rs 11,833 crore, which is also expected to increase after the issue, Mr Radhakrishnan added.

Atlanta posted a net profit of Rs 15.56 crore on income of Rs 109.44 crore for the year ended March 31 2006.

It bagged two projects of Udaipur Bypass Road project on NH-8 (Mumbai-Delhi) and Mumbra Bypass on NH-4 (Mumbai-Pune). While the earlier one has been completed well within time, the latter project is expected to be comleted by December.

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