SVEC Constructions cuts price band and revises price band on poor response

Poor response from investors to initial public offering (IPO), forced SVEC Constructions to extend deadline and lower the price band. The issue which was supposed to be closed on Friday, 8th Feb, is now extended till February 13 and the price band has been lowered to Rs 80 to Rs 90 from Rs 85 to Rs 95. The issue received only 23% subscription till 4 p.m on 8th Feb.

The company, which has experience in the areas of building and irrigation works, plans to raise between Rs 34 crore-Rs 38 crore.

The company plans to deploy funds for the purchase of capital equipment worth Rs 15.32 crore and for meeting the long-term working capital requirements estimated at Rs 23.86 crore.

The company’s order book position as on November 30, 2008 stands at Rs 521.91 crore.

The book running lead managers to the issue are Karvy Investor Services Ltd and Centrum Capital Ltd.