Patel Engineering completes QIP issue, raises Rs 3443.23mn

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Patel Engineering Ltd, a construction company specialising in hydro-power generation and irrigation segment, today announced that the company has raised Rs 3,443.23 million through the issue of fresh issue of shares to qualified institutional buyers (QIBs) at a price of Rs 477.03 per share.

The issue was lead managed by Daiwa Securities, SMBC India Private Limited, Axis Bank Limited, Nomura Financial Advisory & Securities (India) Private Limited, Kotak Mahindra Capital Company Limited and Antique Capital Markets Limited.

Mr Rupen Patel, managing director, Patel Engineering, "The funds raised would be used for various expansion plans of the company, its subsidiaries, joint ventures and other bodies corporate where the company may hold a stake, meet long-term working capital requirements, repay debts and for any other permissible uses."

Patel Engineering's present core operations are in the areas of building hydro-power plants, irrigation dams and urban infrastructure. As on June 30, 2009, company had a consolidated order book of Rs 73,495.20 million. It has bid for projects of approximately Rs 95,725 million, of which hydro power projects constitutes 92.80 per cent.

Meanwhile, it is also scaling up its asset ownership business in power and real estates. In its power vertical;, it is in process of setting up a 1,320 MW thermal power plant at Nagapatnam District in Tamil Nadu and 90 MW hydro power project at Gongri, Arunachal Pradesh.

The company has a historical land-bank of over 1,100 acres in various states. The company has developed a commercial office, "Patel Corporate Park" located in Mumbai. Further, the company has received formal approvals from the Ministry of Commerce and Industry, Department of Commerce, SEZ Section for setting up two IT and ITES SEZ projects on land measuring 63.01 acres and 25.37 acres respectively.