ARSS Infrastructure Projects IPO opens today

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The initial public offering (IPO) of Orissa based infrastructure company, ARSS Infrastructure Projects has opened for subscription today. It plans to raise Rs 103 crore via this issue with a price band of Rs 410-450 per share.

The issue will close for subscription 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 proceeds of the issue are intended to be deployed 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 rest of amount will be used for issue expenses and general corporate purpose.

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.
 
CARE has assigned Grade 2/5 to the IPO, indicating less than average fundamentals.

For the year ended March 31, 2009, it has reported profit after tax of Rs 51.19 crore on total income of Rs 628.23 crore. As of June 2009, it has debt of nearly Rs 240 crore.

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.