Lehman, Deutsche may subscribe to Ramky Infra pre-IPO placement
Lehman Brothers and Deutsche Bank are in the race to pick up a minority stake in Ramky Infrastructure through a pre-public issue placement.
By Nevin John, TNN |
MUMBAI: Lehman Brothers and Deutsche Bank are in the race to pick up a minority stake in Ramky Infrastructure through a pre-public issue placement. The Hyderabad-based construction major plans to raise up to Rs 500 crore through pre-IPO and initial public offering.
“The issue will hit the capital market after the SEBI approval, which is expected in February. Ramky Infra, which is valued about Rs 2,500 crore, plans to divest about 20% stake to raise the fund. The company had diluted 14% stake to IL&FS and Sabre Abraz in December 2006 at Rs 1,165 a share,” said sources in the know. They said the company may sell around 4-5% to financial investors to raise about Rs 100 crore in the pre-IPO deal.
Ayodhya Rami Reddy, chairman of the group, declined to comment. Sources said Enam Securities, Citigroup Global Markets and IL&FS Investsmart have been appointed as the book running lead managers to the issue.The promoters hold 85% stake in the company while employees hold 1% stake.
After the equity dilution, the promoters will hold about 65% stake. The company, which submitted draft red herring prospectus with the market regulator Sebi, is yet to decide on the price band. The order backlog of the company stands at Rs 4,500 crore. It plans to invest the amount to BOT projects.
“The issue will hit the capital market after the SEBI approval, which is expected in February. Ramky Infra, which is valued about Rs 2,500 crore, plans to divest about 20% stake to raise the fund. The company had diluted 14% stake to IL&FS and Sabre Abraz in December 2006 at Rs 1,165 a share,” said sources in the know. They said the company may sell around 4-5% to financial investors to raise about Rs 100 crore in the pre-IPO deal.
Ayodhya Rami Reddy, chairman of the group, declined to comment. Sources said Enam Securities, Citigroup Global Markets and IL&FS Investsmart have been appointed as the book running lead managers to the issue.The promoters hold 85% stake in the company while employees hold 1% stake.
After the equity dilution, the promoters will hold about 65% stake. The company, which submitted draft red herring prospectus with the market regulator Sebi, is yet to decide on the price band. The order backlog of the company stands at Rs 4,500 crore. It plans to invest the amount to BOT projects.
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