The Hindu Business Line : Patel Engineering issue opens on May 3

MR PRAVIN PATEL, Chairman, Patel Engineering Ltd, flanked by with Ms Sonal Patel, COO, and Mr Rupen Patel, Managing Director, at a press conference in Mumbai on Monday. - Paul Noronha

Mumbai April 24

Patel Engineering is launching a follow-on public offer of Rs 425 crore to partly meet its investments in infrastructure projects and capital equipment.

The offer, which comprises a fresh issue of equity shares of Re 1 each at a premium with the price to be determined through 100 per cent book building process, opens for subscription on May 3 and closes on May 9. The issue comprises a net issue to the public of Rs 403.75 crore and a reservation for existing retail shareholders of the company of Rs 21.25 crore.

The company's estimated fund requirement for investment in capital equipment is Rs 70 crore, repayment of contractee advances/debt Rs 80 crore and investment in infrastructure projects, acquisition and joint ventures Rs 150 crore.

With the Plan Document indicating an investment of over Rs 8,50,000 crore in various infrastructure projects in India over the next five years, the company feels that the biggest beneficiaries of these investments would be construction companies, as civil construction component accounts for about 50 to 65 per cent of total infrastructure spending.

The company's order book position, as on December 31, 2005, is Rs 4,339 crore.

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