ARSS Infra IPO to hit market on Feb 8

ARSS Infrastructure Projects plans to raise Rs 103 crore through its initial public offer (IPO) scheduled to hit the market on February 8.

The price-band for the IPO has been fixed between Rs 410-450, a release issued here said.

ARSS Infrastructure is engaged in construction of roads, highways, bridges, irrigation projects, and EPC activities for railways in the country.

The company proposes to use Rs 50 crore from the IPO proceeds for investments to form joint ventures and for projects which have not yet been awarded to the company, the release said.

"ARSS expects to generate profits by execution of projects as a result of such investments and work orders that would be received through credentials of joint venture partners," the release said.

Proceeds of the IPO would also be used for working capital purposes.

The company clocked a revenue and Profit after tax (PAT) of Rs 628 crore and Rs 51 crore in FY 09.

For the nine-month period ended December 31, 2009, ARSS Infrastructure Projects has already notched a revenue of Rs 609 crore and PAT of Rs 50 crore.

The company also has an order-book of Rs 2,877 crore as on January 10.