Indu Projects, the Hyderabad-based Rs 312-crore infrastructure development company with over Rs 6,000-crore projects currently on hand, is set to dilute 8.5 per cent of its equity to raise Rs 150 crore of funds to augment its networth.
At a valuation of around Rs 1,000 crore, the company could recently raise around Rs 90 crore of funds by placing 8.9 per cent equity at Rs 900 per share. As the valuation has now improved to Rs 1,600 crore, the company plans to raise additional funds by placing the equity at Rs 1,300 per share.
Following the recent equity dilution, the company could improve its networth to Rs 122 crore from Rs 30 crore. It expects to improve the networth to Rs 450 crore by the current fiscal-end. The companys paid-up equity would improve to around Rs 15 crore following the placement from the current level of Rs 12.35 crore. For the fiscal ended March 2006, it posted a net profit of Rs 25.79 crore on a turnover of Rs 312.21 crore as against Rs 5.55 crore of net profit on a turnover of Rs 128.49 crore in the previous fiscal.
Currently having a land bank of around 2,000 acres spread over four major States of Andhra Pradesh, Karnataka, Tamil Nadu and Maharashtra, the company is embarking upon projects worth Rs 15,000 crore to be completed over the next five years.
Following the recommendations of the consultancy major Ernst & Young on business restructuring, the company formed four separate strategic business units - construction, realty, realty infrastructure and BOT & special projects. Each of these SBUs would be operationally independent and responsible for building and nurturing the relative business and achieving a healthy growth in bottomline.
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| Posted : 7/1/2006 |
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