Niraj Cement Structurals IPO was subscribed 0.3 times on third day of the issue. The IPO received bids for 9.89 lakh shares as against 32.5 lakh shares on offer.

The price band has been fixed at Rs 175 to Rs 190. The IPO is open for subscription from 26 May 2008 to 30 May 2008. After allowing for reservation of 3.25 lakh equity shares for eligible employees, the net issue to the public will be 29.25 lakh equity shares. The issue would constitute 31.42% of the total post issue paid-up equity capital of the company.

The company proposes to utilize the proceeds of the issue to finance its plan for investment in capital equipment on a recurring basis, fund long term working capital requirements and for general corporate purposes. It intends to bid for road related infrastructure projects - leveraging and building the specialization and pre-qualification and thereby participating in more states and regions and gaining access to more complex projects. It will leverage its strength in road construction to bid for projects on BOOT and buid, operate, transfer (BOT) basis which will enhance the core competence of the company.

Niraj is catering to road projects and has capability to execute various road construction projects. Its major clients include Orissa Work Govt. Dept, Indore Development Authority, Jaipur Development Authority, Kidco and New Mangalore Port Trust. Its present areas of operations are road construction and other infrastructure related works including providing EPC services.

The company reported a net profit of Rs 6.53 crore on total turnover of Rs 92.17 crore in the year ended March 2008.

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