In the right direction

Vascon Engineers, an EPC and real estate developer (winner of one of the Top Ten Builders award by Construction World and the second real estate development company to go public after Godrej Properties), has recently announced an IPO of Rs 200 crore. The main objective, as R Vasudevan, Managing Director, Vascon Engineers says 'is not to raise money through this but to get a better visibility and put the company in a right perspective for investors and the public.' The issue comprises a net issue to the public of 10.7 million equity shares of Rs 10 each and a reservation of one lakh equity shares of Rs 10 each for eligible employees. Almost 60 per cent of the net issue will be allocated on a proportionate basis to qualified institutional buyers - out of which 5 per cent will be allocated on a proportionate basis to mutual funds only. Part of the funds would be used to pay off debts amounting to Rs 39 crore, while about Rs 115 crore would be earmarked for its real estate and EPC business.