Aravali Infrapower (AIPL) engaged in turnkey projects in power transmission and manufacturing of aluminium conductors, has filed its DRHP with Sebi on 30.9.2008 to enter the capital market with a public issue of equity shares of Rs 10 each at a price to be decided at a later stage aggregating Rs 100 crores. Out of which, equity shares worth Rs 4 crores are reserved for the employees of the company.
The company proposes to list its shares on BSE and NSE and the BRLM to the issue is Chartered Capital Investment.
The objects of the issue is for setting up of a manufacturing facility at Sitaganj in Uttarakhand for production of EHV transmission towers and overhead aluminium conductors; setting up of a rolling mill at Sitarganj unit for production of aluminium conductors; relocating Chandigarh and Mohali units of Techno Engineering Company to Punjab; capex for EPC division and for working capital requirement.
The company proposes to utilize the proceeds from the issue for part financing the above mentioned project cost. The company will deploy Rs 55.16 crores for setting up the unit in Uttarakhand for production of transmission towers and overhead aluminium conductors; Rs 16.33 crores for putting up the rolling mill for production of aluminium conductors; Rs 8.72 crores for relocating the Chandigarh and Mohali units to Punjab; capex for EPC division of Rs 2.20 crores and working capital requirement of Rs 216.82 crores.
Besides the Rs 100 crores which the company proposes to raise through the public issue for part financing the project cost, the company has availed a term loan of Rs 32.89 crores from banks, apart from working capital borrowings of Rs 100 crores. Also the promoters of the company have pitched in Rs 33 crores. The company has raised Rs 63.70 crores through internal accruals and Rs 1.59 crores by issuing shares to non-promoter
The company has posted total income of Rs 103.62 crores and net profit of Rs 10.61 crores for the year ended 31st March, 2008 as compared with total income of Rs 64.33 crores and net profit of Rs 5.36 crores for the previous year ended 31.3.07.
Aravali, which was earlier only into aluminium conductors, recently diversified into turnkey construction in the transmission segment besides manufacturing transmission equipment. The company has set up an independent export division and is now scouting for export orders. The company has already received a significant overseas contract, but certain formalities are awaited.
AIPL executes turnkey projects in Power Transmission sector, manufactures transmission towers, aluminium overhead conductors and non-ferrous alloys.
The company has vast experience in manufacturing of Low & High Voltage Transmission Line Towers, Sub-station structures and Aluminum Conductors. It also has a full fledged EPC division which has completed several Transmission Line projects in the country. The company has established its EPC division by acquisition of Pioneer construction company (which is engaged in construction / execution of high voltage transmission lines upto 400KV for the last 25 years for Power Grid Corporation, state electricity Boards of UP, Bihar, West Bengal, DVC and Railways etc.