KNR Constructions, the Hyderabad based construction company engaged in development of roads & Highways, irrigation and urban water infrastructure both as a contractor and developer (under PPP method) is to tap capital market with an initial public issue. The proceeds of the issue will be utilized to fund further equity infusion in the SPVs of BOT projects, purchase of capital equipment and meeting working capital requirements.

KNRCL over the years since its inception in 1995, has build reputation of quality constructor and now has capability to bid, execute and implement large/medium size projects across various infrastructure segment with strong presence in construction and maintenance of roads & highways including bridged and flyovers. It has an unexecuted order book of Rs 1272.98 crore as at June 30, 2007 approximately working out to 4 times the consolidated FY 07 operational income of the company. As on June 30, 2007, it has 24 projects including two BOT projects on hand across various states in India covering Uttar Pradesh, Madhya Pradesh, Assam, Andhra Pradesh, Karnataka, and Tamil Nadu. The company has strong business association with Patel Engineering for the last 7 years and executed projects both in JV with Patel Engineering as well as independently. Currently most of the road projects under execution are with its joint venture partner Patel Engineering.

The issue comprises issue of 7874570 equity shares of Rs 10 face value at a price to be decided through 100% book building process. The issue will constitute 28% of the fully diluted post issue equity share capital of the company and the equity shares are proposed to be listed in BSE & NSE. For the FY 07 the company clocked an consolidated operational income of Rs 324.42 crore and a PAT of Rs 20.26 crore. CRISIL has assigned a CRISIL IPO Grade '3/5' to the proposed IPO of the company and the BRLM are Axis Bank.

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