ACE plans new plant to make cranes

NEW DELHI: Action Construction Equipment (ACE) has its job cut out after its successful IPO recently. This manufacturer of hydraulic mobile cranes and construction equipment is planning to invest part of the net proceeds of its recent public issue to set up a new plant for manufacturing loaders, higher capacity tower cranes and construction equipment along with expansion and modernisation of the existing capacities and facilities.

The company’s plans also include setting up a JV with Tigieffe SRL of Italy and setting up a corporate office and R&D center. The company also proposes to utilise part of the funds for acquisition and investment and also for working capital requirement.

ACE entered the market on September 1, ’06 with an issue at a price band of Rs 110-130 per share. The IPO, which was subscribed 36 times, mobilised between Rs 1,816 crore and Rs 2,146 crore.