IRB Infrastructure Developers Ltd, a company that is into developing of roads and highways sector, proposes to enter the capital markets with a public issue of 51 crore equity shares of Rs 10 each through 100 per cent book building process.
IRB Infrastructure Developers is the holding company of the IRB Group. The company will invest the net proceeds of the issue in its subsidiary, IDAA, and re-pay existing loans.
Deutsche Bank Hong Kong Branch, Jade Dragon (Mauritius) Ltd (a subsidiary of Goldman Sachs) and CPI Ballpark Investments Ltd (a subsidiary of Merrill Lynch) each hold 3.85 per cent stake, and Somerset Emerging Opportunities Fund hold 0.54 per cent stake in the company.
The company, which is diversifying into real estate development, has filed a Draft Red Herring Prospectus (DRHP) for this purpose with the Securities and Exchange Board of India. Deutsche Equities India is the sole coordinator and book relations lead manager (BRLM), while Kotak Mahindra Capital is the co-BRLM for the issue.
IRB Infrastructure Developers is the holding company of the IRB Group. The company was formed to fund the capital requirement of the IRB Group's initiatives in the infrastructure and construction sectors.
Its infrastructure development portfolio includes several large Build Operate Transfer (BOT) projects in the road sector, including the Mumbai-Pune Express Highway and NH4 BOT project and BOT project for the Bharuch to Surat section of NH8.
In January 2007, the company formed a consortium with Deutsche Bank AG Singapore Branch to jointly bid for certain road infrastructure projects.
As a part of its business strategy, the company now proposes to invest in its subsidiary IDAA and make pre- and re-payment of existing loans of the company and the subsidiaries through the net proceeds of the issue.
The company's infrastructure development business involves construction, development and operation of infrastructure development projects. It is an established infrastructure company in the roads sector in India and has a large portfolio of completed and operational BOT projects in the Indian road infrastructure sector.
The company's construction business complements its infrastructure development business and involves engineering, procurement and construction work for construction project on a contractual basis, including in the roads sector. |
