India: Niraj Cement’s IPO subscribed fully

India: Niraj Cement’s IPO subscribed fully
Published: 02 June 2008

The IPO of Niraj Cement Structurals Limited has received total bids for 56.57 lac equity shares and was subscribed 1.74 times by 5.30pm on the closing day. The Company, an engineering and construction company focusing on road construction development, had entered the capital markets on 26th May 2008 with a public issue of 32,50,000 Equity shares of Rs 10 each in the price band of Rs 175 to Rs 190. The Issue would constitute 31.42% of the total post issue paid-up equity capital of the Company. Allbank Finance Ltd (wholly owned subsidiary of Allahabad Bank) is the BRLM for the Issue. The Equity shares are proposed to be listed on the BSE.

The Company proposes to utilise the net proceeds of the Issue to finance its plan for investment in capital equipment on a recurring basis, fund long term working capital requirements and for general corporate purposes. It intends to bid for road related infrastructure projects - leveraging and building the specialization and prequalification and thereby participating in more states and regions and gaining access to more complex projects. It will leverage its strength in Road Construction to bid for projects on BOOT and BOT basis which will enhance the core competence of the company.

Niraj is catering to road projects and has capability to execute various road construction projects. Its major clients include New Mangalore Port Trust, Orissa Work Govt. Dept, Indore Development Authority, Jaipur Development Authority and Kidco. Its present areas of operations are road construction and other infrastructure related works including providing EPC services.