Aiming to cash in on the burgeoning construction sector, Ramky Infrastructure Ltd will invest Rs 15,000 crore over the next five years as it firms up plans to enter the capital market to raise about Rs 400 crore.

"We will invest about Rs 15,000 crore in the next five years for developing infrastructure and real estate projects across the country," Ramky Group Chairman Ayodhya Rami Reddy said.

During the 2008-09 financial year, the company plans to invest Rs 600-1,000 crore in different projects, he added.

The company has also filed the Draft Red Herring Prospectus with the market regulator SEBI for raising about Rs 400 crore through a 100 per cent book building process.

"We plan to raise about Rs 400 crore through a public offer of equity shares of Rs 10 each. The price band and the amount of equity dilution will be decided after the valuation of the company," he said.

The company has recently raised Rs 125 crore through diluting 12.6 per cent stake to IL&FS and Sabre Abraaj Capital.

The Hyderabad-based firm would utilise the IPO proceeds for the Special Purpose Vehicles (SPVs), working capital and creating equipment bank, Reddy said.

The company, which operates in two segments - developer and construction businesses, has formed 12 SPVs for carrying out equal number of projects, he said.

Ramky is currently developing three integrated townships and six industrial parks, besides many road, bridge, waste management, irrigation and power transmission projects.

"At present, we are working on two integrated township projects at Hyderabad and one at Warangal with a total investment of over Rs 3,100 crore," he said.

 

Source : The Economic Times