Gayatri Projects Ltd to enter capital market

Hyderabad, Sep 23: Gayatri Projects Ltd, an Hyderabad based ISO 9001-2000 certified company engaged in execution of major civil works, will enter the capital market with an Initial Public Offer (IPO) of 29,00,000 equity shares of Rs 10 each for cash at a premium to be decided through the book-building process.

Talking to mediapersons the Managing Director T V Sandeep Reddy said, the issue comprised of an offer for sale of 19,00,000 equity shares and a fresh issue of 10,00,000 equity shares. The offer for sale was being made by Videocon Appliances Ltd and Videocon Industries Ltd.

The company also proposed to reserve 1,00,000 equity shares for allotment to eligible employees. The offer constitutes 29 per cent of the post issue paid up capital of the company.

The price band for the issue had been fixed between Rs 275 and Rs 295. The issue would open for subscription bids on September 29.

He said. the money raised from the issue would be invested in a Special Purpose Vehicle for execution of the Meerut-Muzaffarnagar NHAI BOT Boot Project and for repayment of debt.

Currently executing projects amounted about Rs 1,112 crore of public works and irrigation projects in Andhra Pradesh, Madhya Pradesh, Chattisgarh and Gujarat. It was also executing projects through various joint ventures/SPV's in which the company's share of contract value was more than Rs 1353 crore, he added.

He said out of the projects in hand, the highways constituted projects amounting to Rs 469.04 crore while irrigation projects constituted Rs 630.68 crore and other works constituted Rs 12 crore.

While revenues rose from 301.76 crore in 2004-05 to Rs 371.8 crore in 2005-06, Profit After Tax (PAT) has increased from Rs 9.34 crore to Rs 18.08 crore for the same period.

UNI