Prakash Constrowell to raise ₹60 cr via IPO

Mumbai: Prakash Constrowell, a company predominantly engaged in infrastructure development and civil construction business, proposes to enter the capital markets with a public issue of equity shares to raise ₹ 60 crore through 100% book building process.

The issue opens on 19 September and closes on 21 September.

The construction company is expected to announce the price band and minimum bid lot prior to the issue opening date, Prakash Constrowell’s director, Prakash Laddha said here.

The Nasik-based company proposes to utilise the net proceeds of the issue to meet working capital requirement, investment in construction equipments and investment in subsidiaries, Laddha said.

The company operates in the three segments of construction namely infrastructure development, civil construction and residential and commercial real estate construction. The company registered as Class 1A contractor with the public works department of Maharashtra government has executed many projects for the government and semi-government agencies.

As of 30 June, 2011, its order book, was ₹ 150.81 crore and is spread across the construction sectors in which it operates, Laddha said.

The company has successfully completed number of projects awarded by government and semi-government bodies, build, operate & transfer (BOT) project by way of public-private partnership (PPP) model.

The company’s income from operations on a consolidated basis as per the restated financials has grown from ₹ 26.40 crore in the year 2007-08 to ₹ 126.91 crore in the year 2010-11, registering a compounded annual growth rate of 68.77% over the period of past four financial years. Its profit after tax on a consolidated basis has grown from ₹ 3.06 crore in the year 2007-08 to ₹ 10.65 crore in the year 2010-11, a compounded annual growth rate of 51.47%.

Intensive Fiscal Services Pvt Ltd is the sole book running lead manager to the issue. The equity shares of the company are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).