Abstract:
Based in Hyderabad, KNR Constructions Limited, is engaged in construction projects comprising roadways, irrigation projects individually and also as partners in a joint venture. The Company lately released equity shares in the capital markets of the country. The write up scripts the same below.KNR Constructions, based in Hyderabad, formed in the year 1995, is a contracting firm. The company is responsible for implementing irrigation as well as road projects. The road projects undertaken by the company is carried out under joint venture partnership with Patel Engineering Ltd. There are few road projects, which are underway. As per the company's reports the unimplemented order book(as of 30th November 2007), of Rs 1,734 crore was recorded. It was estimated that this figure is about 5.4 times sale of the company during the financial year 2007. KNR Constructions Ltd has carried out many projects related to water infrastructural management projects in the urban areas.
Objectives of KNR Constructions IPO:
KNR Constructions launched IPO lately with the intention of raising money for expenses related to capital equipment. The money raised will also be used for funding BOT (Build Operate Transfer) projects, acquired by means of joint ventures. Another aim of raising money through IPO is to meet the requirements of the working capital. In addition to that expenses related to corporate activities were also taken into consideration.Important dates of KNR Constructions Ltd IPO:
The equity shares introduced by the company opened on 24th January, 2008 and closed on 29th January, 2008. The Issue was 100% Book Building type. Price per equity share was Rs 170 to Rs 180.Size of KNR Constructions IPO:
- The Issue size in terms of number of shares offered were 7,874,570 with face value of Rs 10.
- In terms of its worth, the equity shares stood at Rs 142 crores.
