Business Daily from THE HINDU group of publications
Tuesday, Feb 20, 2007
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Business Daily from THE HINDU group of publications Tuesday, Feb 20, 2007 ePaper |
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Markets
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IPOs Web Extras - Real Estate & Construction M. Somasekhar
The IPO, through a 100 per cent book-building route, is expected by the end of March. A draft red herring prospectus has already been filed with the Securities Exchange Board of India, according to Mr K. Subrahmanian, Managing Director of the Rs 717.76-crore turnover company. In addition to using up to Rs 100 crore towards purchase of equipment that will give it the necessary edge over competitors, the proceeds from the IPO would be directed towards general corporate purposes, repayment of debt, and expansion plans in the international arena, he told a group of visiting Indian Journalists, in this port capital. The IPO is expected to constitute just over 18 per cent of the post issue paid-up capital of Afcons in which, Shapoorji Pallonji holds 97.3 per cent equity. Shapoorji Pallonji had bought Afcons (started originally in 1959), after acquiring the 47 per cent stake from ICICI in 2000 and six per cent from Hazarat & Co.
IPO
Mr S. Paramasivan, Executive Director (Finance & Commercial), said Afcons proposes to offer 1.60 crore equity shares of Rs 10 each for cash at a premium, and it comprises a net issue of 1.57 crore shares to the public with a reservation of 3.21 lakh shares for eligible employees. The mid-sized construction and civil engineering company's order book stood at Rs 3,030 crore at the end of September, 2006, said Mr Paramisavan. Between October 2005 and October 2006 Afcons bagged total orders worth Rs 2,000 crore.
Oil jetty project
In the global markets, the ongoing Rs 75 crore, oil jetty project at Port Louis Harbour, which Afcons won against international competition, is the first major project being implemented by an Indian Construction company, here. The Island nation at present has four oil jetties built and operated by international companies. Afcons has targeted to complete the project ahead of schedule of January 2008 committed to the Mauritius Ports Authority (MPA), Mr Subrahmanain said.
Expansion
The Mauritius Government has charted out a major expansion for the shipping industry, especially the port-related infrastructure which would see an investment up to 15 billion Mauritius rupees (approx Rs 2,000 crore). India could be an important partner, he said.
Afcons, is also ready to bid for the next oil jetty, which is part of the expansion, Mr Subrahmanian said.
Afcons, which has built over 150 marine structures and a wide range of civil and specialised constructions, will focus on the West Asia and African markets for its future foreign growth. It is present in Yemen, Oman, Qatar and the Mauritius at present. It has appointed a British national as Director (International operations) to focus on the African markets, based in Mumbai for the present.
The company has identified hydro and tunnel, oil and gas, bridges, mining projects, specialty bridges, road through the BoT (build, operate, transfer) as the strong sectors to drive its growth, while consolidating in marine structures, the Managing Director said.
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