Relcon Infraprojects files IPO papers with SEBI

Infrastructure development and construction company Relcon Infraprojects has filed draft red herring prospectus with the market regulator SEBI for initial public offer of 40 lakh equity shares of face value of Rs 10 each.

The issue comprises a reservation for eligible employees of upto 60,000 equity shares. It would constitute 30.77% of the fully diluted post-issue paid-up capital of company.

It is an infrastructure development and construction company with backward integration into manufacturing of ready mix concrete and quarrying activities. Company also operates asphalt batch mix plant, drum mix plant, wet mix plant and crushers.

Relcon Infraprojects may also consider pre-IPO placement of up to 5 lakh equity shares aggregating up to Rs 10 crore.

Issue proceeds are proposed to be used for purchase of equipments for expanding infrastructure development and construction business, setting up of three ready mix concrete plants, one asphalt batch mix plant, two wet mix plants and one crushing plant for strengthening in-house sourcing of raw materials; and working capital requirement.

For the period of six months ended September 2010, Relcon has reported a consolidated net profit after tax of Rs 9.5 crore and total income of Rs 151.07 crore.

SREI Capital Markets Limited is the book running lead manager to the issue.