South India based BSCPL Infrastructure Limited has filed for IPO to raise R650 Cr.

While R350 Cr would be the new issuance, R300 Cr worth of shares are offered for sale by investors in the company, New Vernon PE, Tattersalls Ltd., Tiger Veda Bharat, LB India Holdings Mauritius II (a Lehman Brothers entity) and L&T Infrastructure Finance Co.

JM Financial and Axis Capital are the lead managers for the issue.

Along with Amansa Investments and IDFC, all the above mentioned investors hold 27-28% stake in the company.

Use of Funds

The fund raised through new issuance will be utilized for investment in its subsidiary, BSCPL Aurang for part funding of the construction and development of one BOT project under development and for repayment in full or part an ICICI Facility worth R150 Cr.

The investors entered...

The investors looking to exit had bought into the company in 2006-07 by investing R300 Cr. New Vernon PE and Tattersalls were allotted some shares at R705 per share in 2006 and 2007, while L&T Infrastucture Finance was given at R1,146 per share in 2007.

The company

BSCPL is into infrastructure construction, development and management. Services include EPC in the construction segment, BOT projects under the development business and the company also develops and constructs residential buildings in India and Dubai.

As of December 31, 2012 it has completed 308 construction contracts and two BOT projects through JVs.

Its real estate projects include Bollineni Hillside Project at Chennaiand Arena Apartments Project located at Dubai Sports city in Dubai.

Order book as of end of December 2012 was R388.22 Cr and the company is currently executing 21 projects under construction.

As at September 30, 2012, its total debt on a consolidated basis amounted to R233.36 Cr.

Promoters Bollineni Krishnaiah, Bollineni Seenaiah and Bollineni Yamuna have pledged Equity
Shares equivalent to 6.02% of the equity share capital of the company.

The sector

With the government outlining a huge capex in the infrastructure segment and the sector demanding larger investments, global fund managers and PE firms are planning to take more detailed stance in the sector.

JP Morgan was planning to raise between $1 - $1.5 Bn for JP Morgan Asian Infrastructure & Related Resources Opportunity Fund II which will focus to invest in core infrastructure assets across Asia, last month.

The same month it was reported that Macquarie Capital was raising $1.1 Bn fund to invest in Infrastructure in the countries of Sri Lanka, South-East Asia and India.

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