Ashoka Buildcon bags Rs 580cr L&T order

Ashoka Buildcon Limited (ABL), a city-based BOT (build, operate and transfer) operator for infrastructure projects, has reportedly secured a Rs 580-crore contract from construction major Larsen and Toubro’s subsidiary – L&T PNG Tollway Private Limited.

“The contract envisages providing EPC (engineering, procurement and construction) services for L&T PNG’s proposed road projects,” sources privy to the development told Business Standard requesting anonymity.

When contacted, ABL managing director Satish Parakh declined to comment on the contract.

ABL is also planning to raise Rs 225 crore through an initial public offer (IPO). “We propose to utilise the IPO proceedings to repay debts of ABL and its subsidiaries and to meet working capital requirements,” Parakh said.

The company’s core competency lies in executing BOT-based roads and highway projects, EPC and ready-mix concrete production. Its turnover rose 121 per cent to Rs 756 crore in FY09, as compared to Rs 342 crore in the 2007-08 financial year.

ABL’s order book, as on June 30, 2009, stands at Rs 1,785 crore (excluding the L&T order). Of the 26 BOT projects, 17 projects are currently operational, three have been handed over to the government, while six are at various stages of under construction.