Ramky Infra eyes big-ticket projs, IPO hits market tomorrow

Ramky Infrastructure, which will hit the capital market tomorrow with its Rs 530 crore maiden IPO, today said it is eyeing big ticket government infrastructure projects, especially in the railways and the marine sector.

Currently, the Hyderabad-based company is focused on construction-related works in sectors such as water and waste management, transportation, irrigation and industrial parks.

"We see high growth in infrastructure field as government is spending a lot of money in this sector. We plan to make a foray into railway and marine projects," Ramky Infrastructure MD Nagaraja Y R told reporters here today.

Ramky Infrastructure is the flagship company of the Ramky Group, which will hit the market tomorrow and has priced the issue in the range of Rs 405 to Rs 468 per share.

The IPO consists of fresh shares aggregating up to Rs 350 crore and an offer for sale of shares amounting to about Rs 180 crore. The issue closes on September 23.

Though, Nagaraja did not say anything about the anchor investors, investment banking sources said Fidelity, ICICI Pru and Birla Sun Life have shown interest in the issue.

Rating agency Crisil has graded 3/5 to the IPO indicating average fundamentals.

Enam Securities and Deutsche Equities (India) are the rook running lead managers to the issue.

The company's order book value was Rs 7,431 crore at the end of March 31. It had added contracts worth Rs 3,147 crore to its order book during the period from April 1, 2010, through to June 30, 2010.

In financial year 2009-2010, Ramky Infra posted a total income on a consolidated basis of Rs 2,251 crore. It had a net profit on a consolidated basis of Rs 128 crore during the fiscal.