Gayatri Projects is coming out with an IPO on September 26. They are issuing about 29 lakh shares in total with the price band of Rs 275-295.
MD at Gayatri Projects, TV Sandeep Reddy says that a part of the money raised through the IPO will be invested in SPVand the balance will be used to reduce the debt.
Excertps from CNBC-TV18's exclusive interview with TV Sandeep Reddy:
Q: You are hoping to raise these funds to deploy for a SPV (Special Purpose Vehicle) for Meerut-Muzaffarnagar, NHAI project and the repayment of the debt, could you break it up into two segments?
A: Around Rs 20 crore would be invested into the SPV project and the balance surplus would be for reducing the debt.
Q: Your total order book is for Rs 1,111 crore; can you divide that into two segments that you are currently active in, irrigation and highway projects?
A: For Irrigation and highway projects, we have a total order book of Rs 2,400 where in Rs 1,100 crore is directly awarded to the company and the balance is through SPVs and through Joint Ventures.
Q: Could you throw more light on the kind of SPV you are setting right now?
A: The first SPV is the Meerut-Muzaffarnagar project where the SPV is floated for the BOT Toll project. The other two SPVs are for the annuity project, which we have been awarded from the NHAI along with a consortium with IDFC as a financial partner.
Q: Could you throw more light on the kind of SPV you are setting right now?
