RPP Infra Projects to launch IPO

The Indian road developer is planning to raise $11m by floating its shares in the market through an initial public offer. The issue is expected to open on November 15 with proceeds to be used for investments in infrastructure projects.

RPP Infra Projects, an Indian road developer, is planning to launch an initial public offer (IPO) on November 15, a source close to the company told Infrastructure Investor.

The company has gotten approval from the Securities and Exchange Board of India (SEBI) for its proposed IPO, which aims to raise INR500 million (€8.4 million; $10.7 million), the source said.

The funds raised from the IPO will be used to make investments in build-operate-transfer projects, asset purchases and meeting capital requirements, according to the source.

The company is looking to enter the market with a public issue of 6.5 million equity shares of INR10 each through a book building process.  The company will issue 6.1 million fresh equity shares and an offer for sale of 400,000 equity shares by promoters, the company said in a draft document filed to SEBI.

According to the draft document, the issue will constitute 28.76 percent of the post issue paid-up capital – the total amount of shareholder capital that has been paid in full by shareholder – of the company.

RPP Infra Projects is based in southern India. The company has diversified its civil work expertise into special economic zones development, water management projects, and irrigation and power projects. 

It is doing business in the south Indian region, covering the states of Karnataka, Andhra Pradesh, Tamil Nadu and the Union Territory of Andaman Nicobar Islands. The company has recently entered the Sri Lankan market and is currently developing a project in the railway sector.