Orissa-based ARSS Infrastructure Projects, primarily engaged in the construction of railway infrastructure, apart from roads, highways, bridges and irrigation projects, has filed its DRHP with SEBI on 26th February, 08 to enter the capital market with an IPO of equity shares with of a face value of Rs 10 each at a price to be decided through a book building process at a later stage. The company intends to mobilize Rs 120 crore. In a private equity deal, SBI has picked up 8% equity in the company. The deal was for 10 lakh shares out of the company's total equity base of 1.26 crore equity shares of Rs 10 each.
The shares are proposed to be listed on BSE & NSE. The BRLMs to the issue are IDBI Capital Markets and SBI Capital.
The object of the issue is to raise funds to part finance the company's expansion project cost of Rs 173 crores which will be deployed to purchase capital equipment of Rs 60 crore; investment of Rs 30 crore in joint ventures or BOT projects and Rs 63 crore for funding long term working capital requirement.
The company started as a construction company in the field of railway infrastructure development, mainly in the state of Orissa and subsequently expanded the business activities to cater to East Coast Railway, South Eastern Railway, South East Central Railway, Southern Railway & North Western Railway. The company has developed expertise in the railway construction projects, which includes earthwork, major and minor bridges, supply of ballast, sleepers, laying of sleepers & rails and linking of tracks etc. Over the years, the company has diversified its field of activities into other construction segments. The company has active presence in Eastern India, particularly in Orissa. However, in recent years, the company has fanned out to other parts of India, including Chattisgarh, Rajasthan , Jharkhand, Haryana and Tamil Nadu.
The company's clients include Ministry of Railways, Government of Orissa, Rail Vikas Nigam, RITES
IRCON International, NTPC, Hindustan Steel Corporation, PWD - Orissa, IOCL, NHAI. The company has successfully completed around 200 km rail line and about 300 km of roads and highways.
Some of the important projects completed/under completion by the company are: Construction, rehabilitation and widening of Cuttack - Paradeep road, Orissa, for a contract value of Rs.208.27 crores; construction of road bed, bridges, facilities and general electrification for the construction of new broad gauge line between Haridaspur and Paradeep valued at Rs 110.24 crores; construction and four laning of the Singaperumal - Koil - Sriperumpudur road, Tamil Nadu, at a cost of Rs. 102.26 crores; construction of new broad gauge line, bridges, earthwork cuttings, road over bridges, road under bridges and subways between Salem-Karur, Chennai at a project cost of Rs. 51.39 crores and irrigation and canal works for construction of Bahragora distributry main canal, earthwork, lining in Jharkhand, at Rs. 35.63 crores.
For the year ended March 31, 2007, the company recorded an income of Rs 133.23 crore and a net profit of Rs 10.23 crore as compared with an income of Rs 60.58 crore and net profit of Rs 3.23 crore for FY06. For the six months period ended September 30, 2007, the company posted an income of Rs 43.41 crore and a net profit of Rs 1.73 crore.