Ahmedabad: Hyderabad-based SVEC Constructions today announced its entry into the capital market with an initial public offering of 40,00,000 equity shares of Rs 10 each with a price band of Rs 85 to Rs 95 per equity share.

Executive Director of the company Sreemannarayana said that the issue would be open for subscription between February four and eight and the issue size will be Rs 34 crores at the lower end of the price band and Rs 38 crores at the upper end.

He said that the company which has a 22-year proven construction experience in areas of building and irrigation works, proposes to use the issue proceeds for the purchase of capital equipment worth Rs 15.32 crores and for meeting the long term working capital requirements estimated at Rs 23.86 crores

Further, new purchase of equipments is required to improve productivity of the company and at the same time to reduce the dependence on hired equipments.

He also said that the work on hand as on November 30,2007 was Rs 521.91 crores and it is mostly related to execution of government projects in irrigation, in the states of Andhra Pradesh and Madhya Pradesh.

Other contracts include execution of civil works for a waste water treatment plant in Tamil Nadu, besides construction of residential accommodation for Army Welfare Organisation in Gurgaon and Panchkula in Haryana, dwelling units in Vishakapatnam and development of commercial complex in Hyderabad.

Source : UNI