Lanco to enter capital market

Chennai, Nov 03 (UNI) Lanco Infratech Limited, an infrastructure development company with interests in power generation, construction and property development, is entering the capital market to raise about Rs 1,000 crore to fund ongoing and new projects.

Addressing a press meet here, G Bhaskara Rao, Executive Vice- Chairman said the company's Initial Public Offering (IPO) of 44,472,381 equity shares of Rs 10 each for cash, would be decided at a price to be decided through 100 per cent book-building process.

The issue opened for subscription on November six and closed on November 10. The price band for the IPO was between Rs 200 and Rs 240 per equity share, he said.

He said the company proposed to reserve upto 500,000 equity shares for allotment to eligible employees of the company and subscribers. The net offer to the public would be at least 60 per cent and they would be allocated to qualified institutional buyers, he said.

Mr Rao said the company, along with its subsidiaries and Lanco Kondapalli, operated 518 MW of power plants and was implementing various power projects, aggregating to 3275 MW of power generating capacity in various places in the country.

These included projects implemented in Chattisgarh, Karnataka, Uttar Pradesh, Sikkim, Himachal Pradesh and Uttaranchal. In addition, the company entered into a Memorandum of Understanding with the Orissa to set up a 2x660 MW power plant.

The proceeds of IPO would be utilised to meet part of the capital requirements of the above projects, Mr Rao said.

UNI WS AA 1715