Ramky Infrastructure Ltd is planning to invest over Rs 96 crore in three of its special purpose vehicles (SPVs) and Rs 100 crore to purchase construction equipment. The company will fund these projects from the proceeds of the Rs 400 crore public issue being planned during 2008.
According to information available, out of the net proceeds of the issue, the company would be investing over Rs 50.51 crore in Ramky Hyderabad Ring Road Ltd SPV, as part of its equity contribution. The SPV is for designing, developing, financing, operating and maintaining 12.63 kms of eight-lane access controlled expressway. The total cost of the project is about Rs 399.73 crore and the debt equity component is 66:34. The equity component of Rs 70 crore needs to be brought in by Ramky and its partner ELSAMEX SA. Ramky would be holding 74% stake while ELSAMEX would have 26% stake in the SPV.
The company would also be pumping in Rs 24.44 crore in Ramky Herbal and Medicinal Park (Chattisgarh) SPV which has been floated to develop a herbal and medicinal industrial park on BOT basis. The outlay for the project is Rs 96.44 crore with a debt equity of 7:3. Out of the equity contribution of Rs 28.93 crore, Ramky would have to bring in 25.75 crore for its 89% shareholding in the SPV. Similarly in the Ramky Food Park Chattisgarh Ltd SPV, Rs 21.17 crore would be invested as part of its equity. The overall project cost is estimated to be Rs 83.48 crore with debt equity ratio of 70:30.
Besides, investing in SPVs, the proceeds would also be used to purchase contruction equipment and to meet its working capital needs. The company would be buying equipment worth Rs 100 crore to be used in its existing and future projects. It would be include plants and earth moving equipment, construction aid and concrete equipment and material handling equipments among others.