Ashoka Buildcon Ltd., an Indian developer of roads, plans to raise 2.25 billion rupees ($49.3 million) from an initial public offer that begins this week, Chairman Ashok Kataria said in Mumbai today.
Ashoka Buildcon, one of the 11 companies that plan to raise 31 billion rupees from IPOs this week, will sell new shares at 297 rupees to 324 rupees each in the sale that starts Sept. 24 and closes on Sept. 28.
The company, based in Nashik, Maharashtra, has 23 road projects of which 17 are operating and six are under construction, Kataria told reporters today. Ashoka Buildcon makes, operates and then transfers roads to the government after the company’s lease expires. The road builder has about 32 billion rupees of unexecuted orders, Kataria said.
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 companies.
Ashoka Buildcon will use proceeds from the share sale to repay 550 million rupees of debt, buy equipment and meet working capital needs, Kataria said.
Enam Securities Pvt., IDFC Capital Ltd. and Motilal Oswal Investment Advisors Pvt. will manage the sale.