Home >Money >Technofab to launch 2.99 mn share IPO on 29 June

Technofab to launch 2.99 mn share IPO on 29 June

Technofab to launch 2.99 mn share IPO on 29 June

Mumbai: Technofab Engineering, a contractor to power, oil and gas and industrial projects, said on Wednesday it will launch its share sale of 2.99 million shares on 29 June.

The Delhi-based engineering, procurement and construction (EPC) firm plans to raise Rs7.50-8 crore and use the proceeds to finance purchase of construction equipment, sources told Reuters.

The company, which is primarily into supply and commissioning of non-core equipments (balance of plants) on a turn-key basis, will also set up a maintenance and storage facility, and a training centre for employees, they added.

Technofab, whose IPO is managed by Collins Stewart Inga Pvt Ltd, will not sell shares to any anchor investors in the IPO, Avinash Gupta, chairman and canaging director told Reuters.

However, he declined to reveal the size or pricing of the issue, which will close on 2 July.

The EPC firm’s clients include state-run NTPC Ltd, Bharat Heavy Electricals, Reliance Infrastructure and National Nuclear Power Corporation of India.

“About 80% of our revenue comes from what we call blue-chip customers...we believe that we will bite on what we will chew and where we will make decent profits," Arun Kochhar, vice president, said.

In FY10, Technofab’s net sales grew 34% to Rs200 crore while net profit grew 64% to Rs1.909 crore, it said in a statement.

The firm had an outstanding order book of Rs534 crore at March-end compared to Rs400 crore at the beginnning of FY10 and is currently installing fire detection, water treatment, fuel oil handling and coal feeding systems for upcoming power projects with 8,000 MW aggregate capacity, Kochhar said.

The firm, which derives about 19% revenue from overseas operations, mainly in Africa, has outstanding bids for 40 projects worth Rs2200 crore, Kochhar said.

The firm has also emerged as the lowest bidder in a world-bank aided gas-based 300 MW project to be commmissioned in a South Asian country, Kochhar said.

Technofab will partner with a domestic construction firm for this project, he said, but declined to give further details.

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