ARSS Infrastructure Projects IPO subscribed 47.34 times

Gets bids for 11.89 crore shares as compared with 25.12 lakh shares on offer

The initial public offering (IPO) of the Orissa-based infrastructure company, ARSS Infrastructure Projects (AIPL) saw high investor demand. The IPO received bids for 11.89 crore shares as compared to 25.12 lakh shares on offer, NSE data showed. The IPO was subscribed 47.34 times.

AIPL is engaged in the business of construction activities in India. It undertakes construction of railway infrastructure, roads, highways, bridges and irrigation projects.

The proceeds of the issue are intended to be deployed for investment in joint ventures (at a cost of Rs 5 crore) and funding long term working capital requirement (cost of Rs 86 crore). The rest of amount will be used for issue expenses and general corporate purpose.

The company's order book position was at Rs 2877 crore as on 10 January 2010 and it had 145 projects in hand as on that date.

AIPL's net profit jumped 90% to Rs 51.04 crore on 99% growth in revenue to Rs 624.38 crore in the year ended 31 March 2009 over the year ended March 2008.