Kaushalya Infrastructure IPO oversubscribed

November 23, 2007

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The IPO has so far received 6,11,97,500 bids, giving it a subscription of 7.20 times over the issue size of 85,00,000 equity shares

IPO The Public Issue of Kaushalya Infrastructure Development Corporation Limited (KIDCO) has been oversubscribed as per the information available on the websites of the stock exchanges. The IPO has so far received 6,11,97,500 bids, giving it a subscription of 7.20 times over the issue size of 85,00,000 equity shares. KIDCO is a diversified infrastructure development company from eastern India, and is offering the shares at a price band of Rs. 50 to Rs 60 per share. The net issue to the public would constitute 40.93 per cent of the fully diluted post issue paid-up capital of the Company. The issue closes on 23rd November.

As a part of its expansion plans, KIDCO will mainly utilize funds for acquisition of land, land development rights & real estate development, investment in BOT/BOOT projects and joint ventures and for the purchase of capital equipments comprising construction & infrastructure equipments for execution of projects .

The infrastructure development operations of the Company are organized in three major business divisions viz. Kaushalya Nirmàn (Specializes in construction of roads, highways, bridges and industrial infrastructure), Kaushalya Gràm (Specializes in Electrification and Irrigation projects focused on development of rural India) and Kaushalya Parivàr (Specializes in Construction of Commercial & Residential Complexes). The key clients of the Company include various Government Undertakings, State Public Works Departments, as well as State and Central Public Sector Undertakings.

Says Prashant Mehra, managing director of KIDCO, “We are on the expansion mode and would be focusing more upon diversified sectors so as to leverage and expand the operations. After our successful journey in the Eastern part of the country, we are spreading our operations to other parts like the Central India.”

KIDCO aims to operate into diversified sectors such as townships, offices, houses and other buildings, urban infrastructure, highways, roads, power systems, irrigation, dams and agriculture systems, etc. which will mitigate business risk in case of slowdown in any one particular field in the future.

The proposed issue will be lead managed by SREI Capital Markets Limited and the Registrar to the issue will be Intime Spectrum Registry Limited.

Source: indiainfoline.com