RPP Infra first IPO eligible for Sebi’s Rs 2-lakh retail investment cap

RPP issue opens 18th November with a price band fixed at Rs 68 to Rs 75

RPP Infra Projects Limited, primarily engaged in the business of infrastructure development such as highways, roads and bridges, becomes the first Indian corporate to be eligible for the relaxation of the retail investor investment limit in IPOs to Rs 2 lakh from Rs 1 lakh prescribed earlier by the Securities and Exchange Board of India (Sebi). 

RPP proposes to enter the capital markets on November 18, 2010 with a public issue of 65,00,000 equity shares of Rs. 10 each through a 100% book building process. The Issue comprises of a fresh issue of 61,00,000 equity shares by RPP Infra Projects Ltd and an offer for sale of 4,00,000 equity shares by the Promoters. The price band has been fixed at Rs 68 to Rs 75 for equity shares of Rs 10 each. The Issue closes on 22nd November 2010. 

After allowing for reservation of 4,00,000 equity shares for eligible employees, the net issue to the public will be 61,00,000 equity shares. The Issue will constitute 28.76% of the post issue paid-up capital of the Company and the net issue will constitute 26.99% of the post issue paid-up capital of the Company. VC Corporate Advisors Private Limited, Kolkata is the sole Book Running Lead Manager to the Issue and Cameo Corporate Services Ltd is the Registrar to the Issue. 

The Company intends to deploy the net proceeds of the Issue for investment in SPVs for BOT projects, investment in capital equipment, funding margin requirement for working capital and meeting general corporate expenses. 

RPP Infra Projects has leveraged its civil construction expertise in diverse segments of the construction and infrastructure industry such as roads, bridges, highways, SEZ development, irrigation, water supply management and power projects. As of 30th June 2010 the value of its Order Book was Rs 612.90 crore, comprising 5.94% of power projects, 24.35% of water management projects, 47.57% of building projects, 16.32% of SEZ development and 5.82% of irrigation projects. 

About RPP Infra Projects Ltd: 
The Company was incorporated in 1995 and since incorporation has executed over 200 civil construction projects across various segments of construction and infrastructure industry. The Company has diversified its civil work expertise into SEZ Development, Water Management projects, Irrigation and Power Projects. It is doing business in the South Indian region, covering states of Karnataka, Andhra Pradesh, Tamil Nadu and the Union Territory of Andaman Nicobar Islands. The Company has recently entered the Srilanka market and currently executing project in the Railway sector. 

The Company’s total income for FY 2007-08 was Rs. 72.14 crore and net profit after tax at Rs. 2.05 crore, for FY 2008-09 the total income was Rs. 101.23 crore and net profit after tax at Rs. 4.12 crore and for FY 2009-10 the total income was Rs 146.89 crore and net profit after tax at Rs. 8.26 crore. During the first quarter of FY 2010-11 ended 30th June 2010 the Company’s total income was Rs36.86 crore and net profit after tax was Rs 2.18 crore.