ARSS Infrastructure IPO price band fixed at Rs. 410/- to Rs. 450/-

By ENN, Ahmedabad: ARSS Infrastructure Projects Limited, a company engaged in construction activities (construction of roads, highways, bridges, irrigation projects, EPC activities for railways) in India, with its registered office at Bhubaneswar, Orrisa, has fixed the price band between Rs. 410 and Rs. 450 per equity share for an initial public offering ("IPO") of equity shares of Rs. 10 each for cash at a price to be decided through a 100% book-building process. The floor price is 41 times of the face value and the cap price is 45 times of the face value. The Bid/ Offer opens on February 8, 2010 and closes on February 11, 2010. The company is mobilizing an amount of Rs 10300 lacs through this IPO.

ARSS Infrastructure proposes to use Rs.500 lacs out of the proceeds of the Issue for investments into forming joint ventures. The aforesaid funds would also be partly used for projects which have not yet been awarded to the company. ARSS expects to generate profits by execution of projects as a result of such investments and work orders that would be received through the credential of Joint Venture partners.

Apart from investing in JVs, ARSS also intends to increase its fund sources towards working capital requirements. The company has assessed its working capital requirement for the FY 2009-10 to be Rs. 40,186 lacs. The Company believes that to ensure timely execution and completion of the orders procured by it, it would be necessary to supplement its existing working capital requirements. Thus, an amount of Rs 8600 lacs has been identified towards such a requirement.

IDBI Capital Market Services Ltd and SBI Capital Markets Ltd are the Book Running Lead Managers and Bigshare Services Private Limited is the Registrar to the issue.