Sept. 16 (Bloomberg) -- Ramky Infrastructure Ltd., an Indian developer of waste water treatment, real estate projects, will sell 5.3 billion rupees ($115 million) of shares to buy equipment and repay debt.
The company will sell shares for 405 rupees to 468 rupees each in an initial public offer starting Sept. 21, the company said in a statement today. Ramky, based in Hyderabad, will sell 3.5 billion rupees of new shares, and three investors, including founder Alla Ayodhya Rami Reddy, will sell 1.8 billion rupees of shares, said Managing Director Y.R. Nagaraja at a briefing in Mumbai today.
India’s Planning Commission said in a report in March the country will need to spend $1 trillion on highways, ports, airports and utilities between April 2012 and March 2017, twice the amount it recommended in the previous five years. At least half the investment should come from private companies, the report said. Ramky will use the proceeds to buy equipment and repay 250 million rupees of loans.
“India infrastructure has huge opportunities as the government is supporting private investment,” Nagaraja said.
Ramky, which also builds residential, transportation, power transmission and irrigation projects, has about 106 billion rupees of orders in hand as of June 30, Nagaraja said
Enam Securities Pvt. and Deutsche Equities (India) Pvt. will manage the sale, which closes on Sept. 23, according to the offer document.
Ramky Infrastructure had a profit of 1.29 billion rupees on sales of 22.5 billion rupees for the year ended March 31.
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