Engineering procurement and construction (EPC contractor) company VKS Projects Ltd has proposed to enter capital markets with an IPO to raise Rs 55 crore through book building process. The price band has been fixed at Rs 55 to Rs 60. The issue opens on June 29,2012 and closes on July 04,2012. "The proceeds of Rs 55 crore raised through public issue are proposed to be deployed to meet long-term working capital requirements,besides financing the procurement of construction equipment and key machineries and the setting up of engineering design studio/office and training centre in Chennai,Cochin,Delhi,Hyderabad and Ahmedabad," VKS Projects Managing Director V K Sukumaran told reporters here. Post-IPO the promoters' stake will come down to 47 percent,he said. The company intends to meet its working capital requirements to the extent of Rs 15 crore from the proceeds of the issue and the balance will be met from a combination of internal accruals and banking limits at an appropriate time as per the requirement. VKS Projects is engaged in the business of undertaking EPC contracts of alloy steel turnkey piping,civil land development,industrial/ commercial infra projects,structural fabrication and erection of equipments,fire fighting projects and commissioning of chemical plants. In terms of industry segments,the company caters to chemicals,oil and gas (onshore and offshore),refinery,petrochemicals,dyestuff,pharma & bulk drugs,metallurgy,power and textiles. The company had Rs 98 crore worth orders on hand as on December 2011. Its clientele includes Thermax India Ltd,Punj Lloyd Ltd,Deepak Fertilizers & Petrochemicals Ltd,Reliance Industries Ltd and Shriram EPC,Sukumaran said. The equity shares of the company are proposed to be listed on the BSE and NSE.
