Gremach to raise Rs 59 cr via IPO

New Delhi, Mar 7 (UNI) Gremach Infrastructure Equipments and Projects today said it is entering the capital market with plans to raise Rs 59 crore, which would be used to acquire high end multipurpose equipments.

The company, engaged in providing construction and earthmoving machineries to medium and large companies on rent, plans to increase its equipment bank to share it with infrastructure builders.

''The current market size of the sector is Rs 1,250 crore, and is growing at a CAGR of 13 per cent. There are very few organised players in the segment and the penetration levels are low at 2 per cent,'' company's Managing Director Rishi Raj Agarwal told reporters.

The equipment costs is around 20 per cent of any investment in any infrastructure project, Mr Agarwal said adding that the company is mulling to enter into the equipment manufactuing business in the coming years and would invest Rs 3,000 crore in building oil rigs and allied sectors, Mr Agarwal said.

Within the next five years, the market is expected to grow up to Rs 1,500 crore and the investment during this period is likely to cross 125 billion dollars.

The issue, made through 100 per cent book building process, includes reservation of Rs 5.9 crore for the company's employees.

The price band has been fixed at Rs 75 to Rs 90 per equity share of Rs 10 each.

The issue opening tomorrow will close on March 14.

The company's turnover stood at Rs 85 crore for the period ending December 2006, while net profit was Rs six crore.

UNI