VKS Projects Ltd IPO fully subscribed,

 

Dr. V. K. Sukumaran, CMD

MUMBAI, 4^th July 2012: The IPO by Engineering Procurement and Construction (EPC Contractor) company VKS Projects Ltd has received an excellent response from investors and has been fully subscribed, according to information available on the NSE website by 5pm this evening. The Rs 55 crore book building Issue in the Price Band of Rs 55 to Rs 60 per equity share of Rs 10 each has received total bids of 10.28 million equity shares, comprising 5.77 million equity shares from QIBs, 0.57 million from HNIs and 3.94 million from retail investors. The equity shares are proposed to be listed on the BSE and NSE. Aryaman Financial Services Ltd is the sole Book Running Lead Manager for the Issue and Bigshare Services Pvt Ltd is the Registrar 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.

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. 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.

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.


Dr. V. K. Sukumaran, originally from Kerala, is the chief promoter of VKS Projects.