VKS Projects lines up Rs 55-crore IPO plan

Engineering, procurement and construction contractor VKS Projects has announced its IPO plan to raise funds aggregating 55 crore in the price band of 55-60. The issue will open on June 29 and close on July 4. Crisil has assigned IPO Grade 1 to the issue, which indicates poor fundamentals.

Aryaman Financial Services is the merchant banker to the issue. The proceeds will be used to meet working capital needs and for procuring construction equipment. Aryaman was the banker to the recent issues like Swajas Air and Midvalley Entertainment. Swajas issue failed as it could not garner requisite subscription.

Shares of Midvalley, which were issued at 70 in January 2011, went on to touch a high of 153 in July. It is among the 48 companies which have failed to comply with the BSE's listing agreement and will be suspended from July 11 if the non-compliance continues. The stock closed at 7 on Tuesday.