RRP Infra Projects IPO price-band fixed Rs 68-75

Construction firm RPP Infra Projects today said that it has fixed a price-band of Rs 68-75 for its Initial Public Offering (IPO) of Rs 48-crore, scheduled to hit the market on November 18.

"The IPO price band has been fixed at Rs 68-75 per share," RPP Infra Projects Limited's Managing Director R P Arun Sundaram told reporters here today.

The IPO comprises a fresh issue of 61-lakh equity shares by RPP Infra Projects and an offer for sale of four-lakh equity shares by the promoters. The issue closes on November 22.

Of the total Rs 48-crore from the IPO proceeds, Rs 17- crore would go in funding margin required for working capital and Rs 11-crore in meeting capital expenditure requirement, RPP Infra's Chief Operating Officer M K Sivabal said.

Besides, the company is keeping a provision of Rs 10- crore for investment in special purpose vehicles (SPVs) for Built-Operate-and-Transfer (BOT) projects, Sivabal said.

The balance amount would go into general corporate purposes and issue expenses, he said.

With an order-book of around Rs 613-crore, which are to be executed over a  period of next two-years, the infra firm is now looking at participating in various infra projects in the country.

"Our expertise is project execution. We are looking at forming joint ventures with some BOT projects in the range of Rs 50-250-crore," Sivabal said.

The company has diversified into SEZ development, water management, irrigation and power projects. It has operations in Karnataka, Andhra Pradesh, Tamil Nadu and in the Andaman and Nicobar Islands.

It has also entered the Sri Lankan market and is currently executing projects in the railway sector there.