VKS Projects Ltd. IPO opens on June 29, 2012 Price Band fixed at Rs 55 to Rs 60

Kochi, 26^th June 2012: VKS Projects Limited, an ISO 9001:2008, OHSAS 18001:2007 and ISO 14001:2004 certified Engineering Procurement and Construction (EPC Contractor) company, proposes to enter the capital markets with an IPO to raise aggregating Rs 55 crores through 100% 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. Aryaman Financial Services Ltd is the sole Book Running Lead Manager and Bigshare Services Pvt. Ltd. is the Registrar to the Issue. The equity shares are proposed to be listed on the BSE and NSE. Crisil Ltd has assigned IPO Grade 1 to the Issue.

The proceeds raised through this 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 Ltd is engaged in the business of undertaking EPC Contracts of CS/SS/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 has been in the EPC business for the last thirteen years and has developed expertise in its line of operations which are characterized by its ability to minimize overheads, cost control and prevent overruns on project schedules along with strong skills in construction and contract management. The Company believes its strong in-house EPC and Project Management team and good relations with local subcontractors helps it control the entire process. It controls costs by eliminating unnecessary product features, procuring equipment and materials in cost efficient manner, optimizing logistics and maximizing labour efficiency. This has contributed towards securing multiple orders received from customers like Thermax India Ltd, Punj Lloyd Ltd, Deepak Fertilizers & Petrochemicals Ltd, Reliance Industries Ltd, Shriram EPC and many others.

The Company’s revenues have grown at a CAGR of 106.57% between fiscal 2007 and fiscal 2011, increasing from Rs 330.93 Lacs in fiscal 2007 to Rs 6025.43 lacs in fiscal 2011. The revenue has touched Rs 9755.13 lacs for the 9 month period ended 31^st December 2011 in FY 2012. Its restated profit after tax has grown at a CAGR of 150% between fiscal 2007 and fiscal 2011, increasing from Rs 8.09 Lacs in fiscal 2007 to Rs 315.97 Lacs in fiscal 2011. For the 9 months of fiscal 2012 ended 31^st December 2011 the PAT has touched Rs 562.58 lacs.

The business of VKS Projects Ltd has been growing over the years. Considering the existing growth rate the working capital needs of the Company is expected at approximately Rs 30.11 crores for FY 2013. It intends to meet its working capital requirements to the extent of Rs 15 crores from the proceeds of this Issue and the balance will be met from a combination of internal accruals and Banking Limits at an appropriate time as per the requirement.

Disclaimer:"The Company is proposing, subject to market conditions and other considerations, a public issue of its equity shares and has filed a Red Herring Prospectus with the Registrar of Companies. The Red Herring Prospectus is available on the website of SEBI at www.sebi.gov.in and the website of the Book Running Lead Managers at www.afsl.co.in. Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see the section titled "Risk Factors" of the Red Herring Prospectus. The equity shares of the Company have not been and will not be registered under the U.S. Securities Act of 1933, as amended ("U.S. Securities Act") or any state securities laws in the United States, and may not be offered or sold within the United States or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws."