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Ahmedabad-based construction company PSP Projects is planning to raise up to ₹250 crore through an initial public offering, joining a list of infrastructure and construction firms tapping the capital markets. The company is slated to launch its IPO within the next two weeks, sources close to the development said.
Fresh issue, OFS“The plan is to raise up to ₹250 crore, even though the final figure will be decided later. The company had received an ‘observation’ (regulatory nod) from SEBI on March 24,” one of the sources said. When contacted, company officials declined to comment.
PSP Projects will offload up to 10 million shares, which includes a fresh issue of up to 7.2 million shares and an offer-for-sale of 2.86 million promoter shares, according to the company’s prospectus, which was filed with the regulator in December.
Karvy Investor Services and Motilal Oswal Investment Advisors are the managers to the issue. The company will also issue shares to anchor investors, prices of which will be decided later, it added.
PSP Projects is a company providing a diversified range of construction and allied services across industrial, institutional, government, government residential and residential projects in India. The company, traditionally had focused on projects in Gujarat. Recently, it had diversified and started bidding for projects across the country.
Its customers include Cadila Healthcare, Care Institute of Medical Sciences, Emcure Pharmaceuticals, Kaira District Co-operative Milk Producers’ Union (Amul Dairy), Nirma, Sabarmati River Front Development Corporation, Torrent Pharmaceuticals and WTC Noida Development Company.
PSP, which has executed more than 80 projects as of March 31, had posted a net profit of ₹24.93 crore for financial year 2016. Net profit has been growing at an annual rate of 31.44 per cent from ₹8.35 crore in fiscal 2012. It’s contract income has risen to ₹454.17 crore in fiscal 2016, at an annual growth rate of 26.35 per cent during the past four years.
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