EPC contractor VKS Projects has filed a draft red herring prospectus (DRHP) with market regulator SEBI for an initial public offering of Rs 55 crore.
The company may also consider pre-IPO placement of upto 10 lakh equity shares and/or aggregating upto Rs 12 crore.
The engineering procurement and construction company is engaged in the business of undertaking EPC contracts of CS/SS/alloy steel turnkey piping, civil land development, industrial/commercial infra projects, structural fabrication and erection of equipments, fire fighting projects and commissioning of chemical plants for various industries.
VKS intends to use issue proceeds for working capital requirements (of Rs 15 crore), procurement of construction equipment and key machineries (with cost of Rs 22.64 crore) and setting up of engineering design studio/office and training centre in Chennai, Cochin, Delhi, Hyderabad and Ahmedabad (with cost of Rs 10 crore).
Net profit of the company shot up 58% to Rs 3.16 crore for the year ended March 2011 from Rs 2 crore in the previous year. Revenues almost doubled to Rs 60.25 crore during the same period.
Aryaman Financial Services Limited is the book running lead manager to the issue.
