ARSS Infra IPO fully subscribed on QIBs support

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The initial public offering (IPO) of Orissa based infrastructure company, ARSS Infrastructure Projects has been subscribed 1.3 times on day one (February 8), as per data available on the NSE website.

Qualified institutional investors helped the issue to get subscribed on the first day itself, their reserved portion was subscribed nearly 2 times. Non-institutional and retail investors' portion remains undersubscribed.

The price band is at Rs 410-450 per share and the issue will close on February 11, 2010.

The company is engaged in the business of construction activities in India. It undertakes construction of railway infrastructure, roads, highways, bridges and irrigation projects.

The issue proceeds will be used for investment in joint ventures (at a cost of Rs 5 crore) and funding long term working capital requirement (cost of Rs 86 crore).

The company's order book position was at Rs 28.77 billion as on January 10, 2010 and it had 145 projects in hand as on that date.

Its clients' list includes Ministry of Railways, State Government of Orissa, Rail Vikas Nigam Limited, RITES Limited, IRCON International Limited, National Thermal Power Corporation, Hindustan Steel Corporation Limited, PWD - Orissa, IOCL and the National Highway Authority of India. The company has presence in Eastern India, particularly in the state of Orissa.
 
The book running lead managers to the issue are IDBI Capital Market Services Ltd and SBI Capital Markets Ltd. Bigshare Services Private Ltd is the registrar.