Wednesday, March 26, 2008

CARE Assigns 'IPO Grade 3' To PNC Infratech

MUMBAI: CARE has assigned ‘CARE IPO Grade 3’ to the initial public offer of PNC Infratech Ltd, which indicates ‘Average Fundamentals’.

CARE’s IPO grading is an opinion on the fundamentals of the issuer.

PNC Infratech plans to raise Rs 150 crore from around 5.8 million share offering by May. The company focuses on airport infrastructure and on highways, and has worked on airports in Lucknow and Dehradun, and Madurai.

The CARE grading factors experience of PNC Infratech’s promoters, increasing order book position and track record in roads and airport runways for government agencies/ public works departments. The additional factors considered include moderate level of corporate governance and positive outlook for the construction sector. The grading is constrained by the working capital intensive operations, vulnerability to increasing competitive pressure given its relative size and inherent cyclical trends associated with construction sector.

PNC Infratech has presence in various states and has completed around 15 major projects during FY05-07 aggregating Rs 490 crore. Presently, the company has over 18 projects under implementation with order book of around Rs 995 crore as on Sep 30, 2007.

No comments: