Date:09/08/2006 URL: http://www.thehindubusinessline.com/2006/08/09/stories/2006080904061500.htm

Back Lanco Infratech files draft prospectus

Our Bureau

Hyderabad , Aug. 8

Lanco Infratech Ltd, an infrastructure company involved in power generation, construction and property development, has filed its draft red herring prospectus with the Securities and Exchange Board of India to enter the capital market with its initial public offering of equity shares.

In a press release here on Tuesday, the company said it proposes to offer 4.45 crore equity shares of Rs 10 each for cash at a premium to be decided through the 100 per cent book-building process to be conducted on the Mumbai and National stock exchanges.

The issue would constitute 20 per cent of the fully diluted post-issue equity capital.

Lanco Infratech proposes to reserve five lakh equity shares for allotment to eligible employees of the company.

Thus, the net offer to the public would be 4.4 crore equity shares. The company said, on the net offer to public, it plans to reserve 60 per cent for allotment to qualified institutional buyers on a proportionate basis and five per cent to mutual funds.

The company also proposes to reserve up to 10 per cent of the allotment to non-institutional investors.

The balance 30 per cent would be reserved for allotment to retail investors on a proportionate basis.

In its draft prospectus, the company has indicated that it is considering private placement of equity shares.

In the event of a successful private placement of equity shares, the net offer to the public would stand reduced.

The book-running lead managers for the issue include JM Morgan Stanley Ltd, Enam Financial Consultants Pvt Ltd, ICICI Securities Ltd and Kotak Mahindra Capital Company Ltd, the release said.