MSK Projects' Rs 24 crore IPO to open on Sept 27

Vadodara-based MSK Projects India is coming out with an initial public offering (IPO) of 60,00,000 equity shares of Rs 10 each at a premium of Rs 30 per share, aggregating to Rs 24 crore. The issue will open on September 27 and close on October 8.

The lead manager to the issue is Chartered Capital and Investment Limited, Ahmedabad. The minimum application in the public issue will be for 125 equity shares and multiples thereof.

"The present public issue is made to partially fund the built-operate-transfer (BOT) projects for the Hoshangabad-Harda-Khandwa Road and the Raisen-Rahatgadh Road projects. The cost of these projects are Rs 83.58 crore and Rs 62.55 crore, respectively," said Ashok Khurana, director, MSK Projects India Ltd.

Out of the total cost, the company has already invested over Rs 85 crore in both the projects as on May 24, 2004. The balance amount of Rs 41.38 crore will be funded by way of subsidy from Madhya Pradesh Rajya Setu Nirman Nigam Ltd (MPRSNNL) and proceeds from the public issue.

The company has executed large size projects for various private and public sector giants like G E Plastics Ltd, Crompton Greaves, Indian Petrochemicals Corporation Ltd, National Thermal Power Corporation Ltd, Nitco Tiles Pvt Ltd, Gujarat Chemical Port Pvt Ltd, Rajasthan Industrial Investment Corporation Ltd, ACP Industries, Hindustan Lever Ltd, Philips India.

The company has now diversified in a big way into infrastructure development, particularly on the road sector on built-operate-transfer (BOT) basis, which has been accorded high priority by the Government of India.

Due to huge requirements of funds for upgrading maintenance and speedy development of national highways, the government has opened the segment for private sector.

The infrastructure projects successfully completed by the company includes improvement of Nasirabad - Kekri Road, state highway -26, Sikar by-pass on national highway-11, Bharatpur by-pass, four lane railway over bridge at Kisangadh. The value of these projects amount to nearly Rs 40 crore.

The total income of the company has risen from Rs 18.03 crore in the financial year 1999-2000 to Rs 68.94 crore in 2003-2004.