Lanco Infratech, an infrastructure development company with interests in power generation, construction and property development, is open for subscription with an initial public offering, IPO of 4,44,72,381 equity shares of Rs 10 each for cash at a price to be decided through the 100% book-building process.
 
The issue closes on November 10, 2006. Price Band for the IPO is between Rs 200 and Rs 240 per equity share.
 
The shares will be listed on the Bombay Stock Exchange and the National Stock Exchange.

The Book Running Lead Managers to the offering are JM Morgan Stanley, Enam Financial Consultants, ICICI Securities and Kotak Mahindra Capital Company.

The Finquest Securities report on Lanco Infratech IPO:

Lanco is an infrastructure development company. The company has primary interest in segments like power, construction and property development within the construction space. The current order book with the company is Rs 16.2 billion.

Investment rationale

Experienced player with a robust order book

Lanco has an experience of over a decade in the construction business and acquisitions and implementation of power projects. This has enabled the company to identify and successfully execute projects. This rich experience helped the company over the years to assess the risks of the projects well in advance along with helping the company to pre-qualify for the projects.

As on September 2006 the unexecuted order book of Lanco stood at Rs 16.2 billion. The orders are well diversified in power and civil construction segments. Apart from this the company will be developing 19 million square feet of saleable area.

Contd on page 2......

Investment rationale

Concerns

Valuation