Telecom infrastructure services provider RK Infratel Ltd. has filed draft red herring prospectus with market regulator Securities Exchange Board of India or SEBI for public issue of 57.5 lakh equity shares of Rs.10 each, by diluting 38.67 percent stake.
The company is also considering a pre-IPO placement of up to 15 lakh equity shares and aggregating up to Rs.15 crore. If the pre-IPO placement is completed, then accordingly the issue size will be reduced.
It plans to utilize the IPO proceeds for expansion of business by setting up of further OFC network in South Gujarat with an investment of Rs.49.22 crore, acquiring national long distance license at a cost of Rs.6.5 crore, acquiring category A license for operating internet services as ISP involving Rs.50 lakh, and and additional working capital requirements of Rs.8.09 crore.
The company clocked a net profit of Rs.2.31 crore on total income of Rs.14.26 crore for the nine months ended December 31, 2011.
Indbank Merchant Banking Services Limited is the book running lead manager to the issue.
The company provides infrastructure services, such as optical fibre cable (OFC) implementation, turnkey solutions (OFC and copper) for connectivity, OFC blowing, OFC splicing, horizontal directional drilling, etc. for various industries including telecom, cable television, internet services, power and oil and gas.
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