Our Bureau

Kolkata, March 24

After successfully modernising the Dibrugarh airport, the city-based Tantia Construction Ltd is keen on participating in the modernisation activities of the non-metro airport terminals.

According to Mr I.P. Tantia, Chairman and Managing Director of Tantia Constructions, the company will be participating in the tenders for these airport modernisation projects.

"We were not eligible for the metro airport projects. Those were big projects and foreign tie-ups were also necessary. So, instead of the big projects, we are focusing on smaller projects. In the next three years 60 airports will be modernised. There is tremendous scope for business," Mr Tantia said.

In the last financial year, Tantia Constructions was hit by the high steel prices and ended with a turnover of Rs 103 crore. In the current financial year, the company is hoping to record a turnover of Rs 170 crore.

"The size of our order book is approximately Rs 800 crore and it is quite evenly balanced because we are working in several sectors such as roads, rails, urban development, power transmission, jetties and tunnels," he said.

The company, which is currently listed on the Kolkata and Delhi stock exchanges, is coming out with a public issue of 42.50 lakh shares. The price band is fixed at Rs 45-50.

The company is hoping to raise Rs 56 crore from the issue. The promoters are also pumping in around Rs 26 crore in the company through this issue. At present, the Tantias are holding 64.11 per cent in the company but this will drop to 51.19 per cent after the public issue.The issue the proceeds of which will be to buy capital equipment will help Tantia Constructions to move into the league of the bigger infrastructure companies. Following the issue, the improvement in net worth to Rs 75 crore will help the company to participate in BOT and BOOT projects. "Earlier, we were participating in projects of around Rs 150 crore. Now we will scale it up to include Rs 500-crore projects," he added.Earlier, Tantia Constructions had worked in Nepal, Bhutan and Bangladesh. Recently, it has received queries from Abu Dhabi.

(This article was published in the Business Line print edition dated March 25, 2006)
XThese are links to The Hindu Business Line suggested by Outbrain, which may or may not be relevant to the other content on this page. You can read Outbrain's privacy and cookie policy here.