The Hindu Business Line : Rithwik Projects gearing up for capital market foray

Hyderabad, Nov. 21 Power and infrastructure development company Rithwik Projects Ltd is gearing up to enter the capital market to part-fund its expansion plans.

The Hyderabad-based company, which is currently executing infrastructure projects both directly and as a service provider along with some hydel-generation power plants, has already filed the Draft Red Herring Prospectus and is awaiting nod for the book-building process.

The company has also come in for heightened investment interest from private equity players who are lately scouting for investments in infrastructure companies.

Raising funds

The Vice-President of Rithwik Projects, Mr B. Jayaprakash Reddy, said that the company is in the process of raising funds to meet expansion plans, working capital requirements, and to scale-up the nature and scope of its business portfolio.

The company is now on course to achieving a turnover of about Rs 300 crore and currently has an order book of Rs 3,000 crore, Mr Reddy said.

The size of the issue and the premium to be charged would be finalised shortly, he explained.

Project terrain

The company is executing scores of projects in hostile terrains including a 6.5-km tunnel in the Northern region for the Konkan Railway, a mega hydel project, is developing two 24-mw units on the Netrawathi river system in Karnataka, and is in the fray for some more competitive bids.

The company had initially focussed on construction works and irrigation projects covering canals, masonry dams, tunnelling and transportation engineering works and has Konkan Railway, Ores India, Orissa Mining Corporation and Engineering Projects India Ltd among some of the marquee clients.

The company has enlisted the services of Saffron Capital Advisors Pvt Ltd as book running lead manager and Aarthi Consultants as registrar for the issue. Once the issue is through, the company expects to list on the BSE and NSE