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December 7, 2010

A2Z IPO price band set at 400 - 410 Rs.

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Mumbai based Engineering, Procurement and Construction (EPC) firm A2Z Group has filed a DHRP with SEBI on July 29 for Rs. 750 Crs IPO to fund its power foray programs.

Subsequently, A2Z Group has got market regulator's nod to launch the IPO. The IPO is being opened on Dec 8 by the book running managers IDFC Capital, DSP Merrill Lynch, Enam Securities, ICICI Securities and SBI Capital Markets.

A2Z Group was founded in the year 2002 and achieved a turnover of INR 750 Crore during 2008-2009 and INR 1200 Crore for 2009-2010.

The Group covers three business verticals of which the Engineering, Procurement & Construction (EPC) Company is the largest entity. Its business operations encompass Electrical Distribution Systems, EHV Switch yards, Transmission lines, Railways Electrification, Discom IT Applications & BOP for Power Plants.

The company has a biomass power generating assets  capacity of about 60MW.  In Punjab, the company was setting up three co-generation power plants in collaboration with sugar mills on a Build-Own-Operate-Transfer (BOOT) model for a period of 15 years. A2Z will provide steam and power for operating the manufacturing process of the sugar mills during the crushing season. A2Z, which also bagged one of the largest municipal solid-waste management contract from Kanpur municipal corporation, planned to set up 10-15 Mw capacity power plants in various cities, depending on the availability of processed solid waste.

A2Z has has set a price band of 400 rupees to 410 rupees for its initial public offering to raise as much as Rs 8.62 billion ($191.7 million).

The offer comprises a fresh issue of equity shares at the issue price aggregating Rs 6.75 billion and an offer for sale of 4.56 million shares by the selling shareholders.

Click here to read more about A2Z's IPO.

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