Vijay Solvex

By Research Desk
about 14 years ago
Vijay Solvex

Vijai Infrastructure, engaged primarily in execution of transport engineering projects, has filed its DRHP with SEBI on 30th April, 2008 to enter the capital market with a public issue of 62 lakh equity shares of Rs 10 each at a price to be decided through a 100% book building process. The issue includes promoters' contribution of 1.50 lakh equity shares and reservation of up to 50,000 equity shares to the employees of the company. The net offer to the public is 60 lakh equity shares. The issue constitutes 37.17% of the fully diluted post issue paid-up capital of the company.


The company proposes to list its shares on BSE & NSE and the BRLM to the issue is SPA Merchant Bankers.


The object of the issue is to raise funds to part finance investment in capital equipment, BOT projects and joint ventures of Rs 41.50 crore; Rs 30 crore for augmenting long term working capital requirement and repayment of loans.


Incorporated in 1997, Vijai Infrastructure is a construction company implementing Quality Management Systems in related activities associated with bridges, roads, highways, and buildings.  The company's major clients include National Housing Authority of India (NHAI), UP PWD, Unitech, Larsen & Toubro, Tantia Construction Company and Nagarjuna Construction Corporation (NCC).


As of February 29, 2008, the total value of the company's order book was Rs 588.59 crore, which consists of unfinished/unbilled portions of ongoing projects and projects for which the company has received orders and is yet to commence construction.  


The company is presently executing highways and road sector projects worth Rs. 750.75 crores, which includes four laning of 40 km segment of Gorakhpur - Gopalganj section of National Highway - 28 in Uttar Pradesh in joint venture with NCC, awarded by NHAI with a contract value

of Rs. 380.35 crore; rehabilitation works of 51.5 km road of State Highway -15 from Faizabad to Raniganj in Uttar Pradesh (on subcontract for Unitech Ltd.) with project cost of Rs. 43.95 crore and major maintenance works of 45 km of Road in Uttar Pradesh (on subcontract for Unitech Ltd.), the contract value of which is Rs. 31.74 crore.


The company has also entered into a joint venture agreement with Vijai Constructions for preparing and submitting RFQ (Request for Quotation) application and subsequently tender to the contracts for construction of four lane Bhopal Bypass Road at a cost of Rs 252 crore and Indore-Ujjain road with approximate cost of Rs 252 crore. The projects are not yet awarded to the company.


For the year ended March 31, 2007, the company posted an income of Rs 127.50 crore and net profit of Rs 7.09 crore as against an income of Rs 91.41 crore and net profit of Rs 4.54 crore for FY06. For 9 month period ended 31st December, 2007, the company's total income was Rs 129.04 crore and net profit was Rs 7.38 crore.

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