Abraaj Capital, the biggest private equity group in the Middle East, North Africa and South Asia (MENASA) region, highlighted today the successful initial public offering (IPO) and listing of shares by Ramky Infrastructure Limited (RIL), an Abraaj Capital partner company.
An integrated construction and infrastructure development and management company based in Hyderabad, India, RIL listed its shares on the Bombay Stock Exchange and National Stock Exchange of India Ltd. on October 8, 2010.
Abraaj Capital recognized the potential of RIL as early as 2006, and is invested in the company through its US$2 billion Infrastructure and Growth Capital Fund. Abraaj Capital has taken a board role at RIL to support the companyâ€™s growth and expansion.
Ahmed Badreldin, Executive Director at Abraaj Capital, said: â€œRamkyâ€™s successful IPO is an affirmation of Abraajâ€™s investment thesis. We remain a committed partner of Ramky and continue to believe in the companyâ€™s significant growth potential. We are confident that Ramkyâ€™s robust business model, strong management and focused approach will continue to exceed the expectations of its investors.
â€œThis is our second partner company in India to go public this year, following Man Infraconstruction Limitedâ€™s listing in April 2010,â€ Badreldin said. â€œWe continue to believe in the strength and potential of the Indian economy, especially the infrastructure sector.â€
The IPO offered primary issuance of 7,777,777 equity shares aggregating up to INR 350 crore (US$77.5 million) and an offer for sale of 4,000,000 equity shares by existing shareholders, amounting to roughly INR 180 crore (US$39.8 million).
The IPO received a strong response from institutional investors. The Qualified Institutional Buyers portion of the IPO was oversubscribed by more than 4.5 times, while the non-institutional tranche received an excellent response, with an oversubscription of almost 1.5 times. Overall, the IPO was subscribed by 2.89 times by receiving bids for over 31.6 million shares, as against 10.9 million equities on offer.
Investors demonstrated their confidence in Ramky on the back of its presence in the attractive infrastructure industry in India, proven financial track record and consistent industry leading margins.
RIL has witnessed rapid growth over the last few years supported by its diverse business operations and pan-Indian presence. In addition, the company has a broad range of clients in the government and private sectors.
RIL had a healthy order book valued at INR 11,397 crore (US$2.5 million) at the end of September 30, 2010 which has more than doubled compared to the same period last year.