Supreme Infrastructure IPO to raise Rs 36 crore

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New Delhi, Sept 20 (UNI) Mumbai-based Supreme Infrastructure will enter the capital market with a public issue to raise Rs 36 crore through a 100 per cent book building process at a price band of Rs 95 to Rs 108 to fund its expansion plans.

The issue will open tomorrow and close on September 26, 2007.

The issue constitutes 25.05 per cent of the post issue paid-up capital of the company.

Out of the proceeds of the issue, the company plans to utilise Rs 14.3 crore for the purchase of plant and machinery, Rs 6.7 crore for the purchase of plant and machinery for its real estate business and Rs 17.9 crore as a long term capital.

The company is mainly engaged in infrastructure development and civil construction. Its ongoing projects include construction of road, highways and execution of a Rs 140 crore contract of National Highway Authority of India in Karnataka.

The company is also executing earthwork and civil construction work for laying railway tracks as part of the Kurla-Thane expansion plans under the World Bank-aided Mumbai Urban Transport Project (MUTP).

Supreme Infrastructure managing director Vikram Sharma said, ''The proceeds of the IPO will be used to generate bigger capacities and more complex projects.'' Presently, the company has four units and has projects in and around Mumbai and Chitadurga in Karnataka.

For the first quarter of the current fiscal, the company posted a net profit of Rs 5.78 crore.

The proposed issue will be lead managed by Karvy Investor Services Ltd and the Registrar to the issue will be Bigshare Services.


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