Construction firm Montecarlo files for IPO

Ahmedabad-based civil construction firm Montecarlo Limited has filed a draft red herring prospectus for an IPO comprising a fresh issue of equity worth Rs 4.5 billion and a sale of 3 million shares by the promoter. The IPO size is estimated at Rs 5.5 billion-Rs 6 billion ($82 million-$89 million). Edelweiss Financial Services, Axis Capital and IDFC Bank are the merchant bankers managing the IPO. Of the net proceeds from the fresh issuance, Montecarlo will use Rs 3 billion for working capital requirements and Rs 500 million to part-finance the expansion and reinforcement of its Hubli-Haveri road. The company will utilise an undisclosed amount for general corporate purposes. It will not receive any proceeds from the secondary sale by the promoter trust.