Hyderabad-based BS Transcomm has filed its DRHP with Sebi on October1, 2008 to enter the capital market with a public issue of 76,79,410 equity shares of Rs 10 each at a price to be decided at a later stage through the 100% book building process. The company is considering a pre-IPO placement of upto 22,09,744 equity shares to certain investors prior to the filing of the RHP. The issue will constitute 35.10% of the fully diluted post-issue paid up capital of the company.
The company proposes to list its shares on BSE and NSE. The BRLM to the issue is IL&FS Investsmart..
The objects of the issue is for increasing manufacturing capacity from the current 36,000 mta to 40,000 mta and set up a rolling plant with an installed capacity of 90,000 mta in two phases at Medak in Andhra Pradesh. Another object of the issue is for raising margin money for working capital and for general corporate purposes.
The company proposes to utilize the proceeds from the issue for part-financing the above-mentioned project cost. It wil deploy Rs 85 crores for land purchase, site development and for building and foundation laying; Rs 110.21 crores for plant & machinery; Rs 6.56 crores for miscellaneous fixed assets and other expenditure and Rs 54.61 crores for working capital margin.
For the year ended 31st March, 2008, the company posted total income of Rs 438 crores against Rs 201 crores in the previous year. The profit after tax for the year ended was Rs 14 crores as against Rs 3 crores for the previous year.
The company is engaged in the business of manufacturing and supply of towers to the telecommunication and the power sector in India with a pan India presence in 19 out of the 23 telecom circles and have eight circle offices throughout India through which it services customers in 19 telecom circles. In addition, it has also started providing turnkey solutions to the telecommunication and power transmission industry.
The tower manufacturing activities include designing and fabrication of telecommunication and power transmission towers and supplies towers to companies like Reliance Infratel, Vodafone, Idea Cellular, Wireless- TT Info Services, Essar Telecom, Indus Towers, Transmission Corporation of Andhra Pradesh (APtransco) and Huawei Telecommunications.
As a turnkey solution provider to the telecommunication sector, the company undertake radio frequency planning and transmission survey, site identification, acquisition, clearance and design, technology integration, project management and control. The clients to whom BS provide turnkey solutions are Wireless- TT Info Services, Reliance InfoComm and Erricson India.
Presently it is executing projects for APTransco.