Mumbai: Ahmedabad-based construction firm PSP Projects’ initial public offer (IPO), which aims to raise Rs 211 crore, will hit the markets on 17 May with a price band of Rs 205-210 per equity share. The issue, which closes on May 19, includes a fresh issue of up to 72 lakh equity shares and an offer for sale of up to 28.8 equity shares.
“We plan to utilise the funds raised from the proceeds to meet our working capital requirements and capital expenditure,” company’s chief financial officer Hetal Patel told reporters on Tuesday. The company will not receive any proceeds from the offer for sale, she said.
“Out of the fresh issue, which will be over Rs150 crore, Rs 63 crore will be utilised for funding our working capital requirements, while the rest will be our capex which we will be deploying for fiscals 2018 and 2019,” Patel added.
The company plans to spend Rs143 crore as working capital for the current fiscal. Karvy Investor Services and Motilal Oswal Investment Advisors are the Book Running Lead Managers to the issue.
PSP Projects is a multidisciplinary construction company offering a diversified range of construction and allied services across industrial, institutional, government, government residential and residential projects in India.
Currently the standalone order book of the company stands at Rs279 crore with 27 projects across states like Gujarat, Karnataka and Rajasthan.