The Hindu Business Line : Atlanta IPO opens on Sept 1

PITCHING FOR NEW OFFER: (from right) Mr G. Viswanathan, Chairman, Atlanta Ltd, with Mr Rajhoo, Bbarot, MD, and Mr Rikin Bbarot, Director Project, at a press conference to announce the company's IPO in Mumbai on Monday. - Paul Noronha

Mumbai , Aug. 28

Atlanta Ltd, the company in the business of construction, infrastructure and mining, is coming out with an initial public offering of 43 lakh equity shares of Rs 10 each through a 100-per cent book building process.

The issue opens on September 1 and closes on September 7. The price band has been fixed between Rs 130 and Rs 150 a share.

The net issue to the public will be 41 lakh equity shares with the rest being set aside for employees.

The company proposes to utilise part of the net proceeds of the issue for investing in Balaji Tollways Ltd, a SPV set up for the execution of the Nagpur-Kondhali four-lane BOT project.

Atlanta in a joint venture with SREI Infrastructure Finance Ltd, had bid for "improvement, operation and maintenance including strengthening and widening of the existing 2-lane road to 4-lane dual carriageway from 9.2 km to 50 km on the NH-6 (Nagpur-Kondhali section) in Maharastra." Of the proceeds of the issue, around Rs 42.92 crore will be invested in the equity capital of the SPV. At present, Atlanta holds 34 per cent and SREI Infrastructure Finance Ltd 26 per cent of the paid-up capital in the SPV. Individuals forming part of the promoter group of Atlanta hold rest of the equity. Subsequent to this investment, Atlanta's shareholding in the SPV will increase to 74 per cent.

At a press meet, Mr Rajhoo Bbarot, Managing Director, Atlanta Ltd, said: "There has been no delay in the projects because of this IPO." However, the company's prospectus mentions, "there has been a delay in commencement of our schedule for the proposed project."

The net profit after tax has gone up from Rs 2.41 crore to Rs 15.56 crore between 2001-02 and the year ended March 31, 2006.