RKCPL Announces Rs 1,250 Crore IPO for Infrastructure Expansion
RKCPL Ltd., a Gurugram-based civil construction and infrastructure development company, has filed for an IPO worth Rs 1,250 crore. The offering includes a fresh issue of Rs 700 crore and an offer for sale of Rs 550 crore. Funds will be used for working capital, subsidiary investments, capital expenditure, and debt repayment. The company specializes in EPC and HAM projects, with a current order book of Rs 2,617 crore. Equirus Capital and Anand Rathi Advisors are managing the IPO process.
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RKCPL Ltd., a prominent player in civil construction and infrastructure development, has taken a significant step towards public listing by filing for an Initial Public Offering (IPO) worth Rs 1,250 crore. The Gurugram-based company aims to raise funds for expansion and strengthen its position in the infrastructure sector.
IPO Structure and Objectives
The IPO comprises two components:
- A fresh issue of shares worth Rs 700 crore
- An offer for sale (OFS) of Rs 550 crore
Joint Managing Directors Naresh Kumar and Krishan Kumar Goyal will participate in the OFS by selling a portion of their shareholdings.
RKCPL has outlined clear objectives for utilizing the IPO proceeds:
| Purpose | Amount (in Rs crore) |
|---|---|
| Working capital requirements | 200.00 |
| Subsidiary investments | 138.00 |
| Capital expenditure | 130.00 |
| Debt repayment | 50.00 |
Company Profile and Financial Position
RKCPL specializes in Engineering, Procurement, and Construction (EPC) and Hybrid Annuity Model (HAM) projects, focusing on critical infrastructure such as highways, bridges, and expressways. The company's expertise and track record have earned it government approval to bid for projects up to Rs 650 crore.
Key financial indicators:
- Total outstanding borrowings: Rs 823.00 crore
- Current order book value: Rs 2,617.00 crore
The substantial order book demonstrates RKCPL's strong market position and potential for future growth in the infrastructure sector.
IPO Details
Equirus Capital and Anand Rathi Advisors have been appointed as the merchant bankers to manage the IPO process. These experienced financial institutions will guide RKCPL through the complexities of going public and help ensure a successful listing.
Industry Outlook
The infrastructure sector in India continues to be a key focus area for government investment and development. RKCPL's decision to go public comes at a time when there is significant emphasis on expanding and upgrading the country's infrastructure, particularly in transportation networks.
Conclusion
RKCPL's IPO filing marks a significant milestone for the company and reflects its ambitions for growth and expansion in the competitive infrastructure development sector. Investors and industry observers will be closely watching this IPO as it progresses through the regulatory process and eventually hits the market.
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