Lanco Infratech IPO opens on November six

Bangalore, Nov 2: Lanco Infratech Limited, an infrastructure development company with interests in power generation, construction and property development, is coming out with an Initial Public Offering of 44,472,381 equity shares of Rs ten each for cash at a price band of Rs 200 to Rs 240 per equity share.

The issue would open on November six and close on November ten.

Announcing this at a press conference here today, Lanco Executive Vice-Chairman G Bhaskar Rao said that of the total IPO, 500,000 equity shares would be reserved for allotment to employees of the company and its subsidiaries. Of the net offer to the public, at least 60 per cent would be allocated to Qualified Institutional Buyers (QIB) on a proportionate basis and five per cent for mutual funds registered with the Securities and Exchange Board of India (SEBI).

He said a part of the proceeds would be invested to capitalise the company's subsidiaries, which were at various stages of development, subscribe to the equity of Nagarjuna Power Project, payment for acquisition of 13.3 per cent equity stake in Aban Power and payments to Globeleq for the acquisitioon of its 25.1 per cent equity stake in Lanco Kondapalli, the flagship of the company.

The company, with Lanco Kondapalli, operated 518 MW of power plants and was implementing various power projects aggregating to 3,275 MW power generating capacity by 2010. Besides, the company had entered into an MoU with the Orissa Government to set up a 2 X 660 MW power plant in that State.

Mr Rao said that in property development business, the company owned or had won bids to develop approximately 19.5 million sqft of saleable area, comprising a 100 acre integrated IT park and township and a 21.8 acre residential development, both located in Hyderabad.

In addition, the company had won a bid to develop an IT park and township on a 10.7 acre plot, on which it proposed to develop two million sqft of saleable area in Visakhapatnam in Andhra Pradesh.

UNI