Ahmedabad-based construction company PSP Projects is looking to raise about Rs 212 crore at the upper end of the price band through an initial public offering, scheduled to open on May 17 and close on May 19, 2017.
The company has fixed a price band of Rs 205–210 per share of face value of Rs 10 each.
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.
Karvy Investor Services and Motilal Oswal Investment Advisors are the managers to the issue, while Karvy Computershare is the registrar to the issue.
The company will also issue shares to anchor investors, a day prior to the issue, the company said in a statement.
The company proposes to utilise the net proceeds of the fresh issue for funding working capital requirements of the company, funding capital expenditure requirements and general corporate purposes. The company will not receive any proceeds from the offer for sale.
Shares of PSP Projects are proposed to be listed on the NSE and the BSE.
On May 4, sources close to the development had told BusinessLine that PSP Projects was planning to launch the IPO within two weeks.
PSP Projects is a company providing a diversified range of construction and allied services across industrial, institutional, government, government 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 the financial year 2016.
Net profit has been growing at an annual rate of 31.44 per cent from ₹8.35 crore in fiscal 2012. Its 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.