Hyderabad-based AMR Constructions, engaged in infrastructure, irrigation, excavation and raising of minerals, industrial constructions and housing sectors, has filed its DRHP with Sebi on 8/10/2008 to enter the capital market with an IPO of 58 lakh equity shares of Rs 10 each at a price to be decided through the 100% book building process at a later stage. The issue will constitute 26.13% of the fully diluted post issue paid-up capital of the company.
The company proposes to list its shares on BSE and NSE and the BRLM to the issue is Prabhudas Lilladher.
AMR Constructions is in talks with a US-based fund house for a possible dilution of 25% stake.
The objects of the issue are for acquisition of capital equipments; working capital requirement and for general corporate purposes..
The company proposes to utilize Rs 80.28 crores from the issue proceeds for acquisition of capital equipment and Rs 65 crores for working capital requirement.
The company's total income for fiscal years ended 31/3/07 and 31/3/08 was Rs 310 crores and 587 crores respectively, recording a growth of 90% over the previous year. Profit after tax for fiscal years 2007 and 2008 was Rs 25 crores and Rs 35 crores respectively, a growth of 43 over the previous year of 2007.
AMR Constructionss undertakes long term contracts for excavation of minerals such as coal, limestone, lignite and iron ore. The company have been awarded a contract by Singareni Collieries Company of Rs. 202.54 crores to be executed over a period of five years for removal of over-burden from the coal mines in Andhra Pradesh. Recently, the company have also received a LoI in September 2008 for coal extraction from Singareni Collieries. The duration of this project is 6 years.
It also undertakes iron ore excavation.
The company also undertakes contracts for constructions of roads, buildings and industrial and irrigation infrastructure projects.
Presently, some of the key contracts being executed by the company are the refinery project of Mangalore Refinery & Petrochemicals of Rs 76 crores, Uranium Corporation of India of Rs 23crores, construction of Roads for Tadipatri Municipality area for Rs 34 crores etc.
Some of the clients for whom AMR have executed contracts in the past include Department of Atomic Energy, Bridgestone ACC India, Chennai Petroleum Corporation Ltd, Indian School of Business, Mishra Dhatu Nigam Ltd., Reliance Engineering Associates Pvt. Ltd., Power Grid Corporation of India Ltd., Larsen & Toubro Ltd., Essar Projects.
AMR's outstanding work order book as of March 31, 2008 stood at Rs. 913 crores, further during
the four month ended July 31, 2008, the company have received work orders and LoI worth Rs. 334 crores