Hyderabad-based infrastructure company Soma Enterprise has diluted equity to the tune of Rs 400 crores to 3i India Infrastructure Fund, company’s director Akineedu Maganti said on Wednesday. The company plans to utilise the funds to invest in Build Operate and Transfer projects.
Maganti said the company is not looking at an initial public offer immediately. “We are carrying out our projects from internal accruals and as and when we are in need of funds we will think of floating an IPO,” Maganti said.
The Rs 1,200 crore Soma Enterprise is at present implementing projects worth over Rs 6,500 crores in sectors including roads and highways, hydro electric power plants, irrigation and water resources development and urban infrastructure.
“Soma Enterprises has also won the bid for 4-kilometer underground stretch for the Delhi Metro from All India Institute of Medical Sciences to 7 Race Course Road. We will design and build the stretch in joint venture with Continental Engineering of Taiwan using the twin tunneling technology, our venture partners have immense experience in tunneling technology and we hope to complete the stretch before the original completion schedule of late 2009” Maganti said.
The company, Maganti said is also looking to venture into power generation and transmission. Government has recently opened the transmission sector for private parties.
“We have won the largest civil construction package and are building a dam for the 2,000 megawatt Subansari Lower hydro electrical project on the Arunachal Pradesh – Assam border being developed by the National Hydro Electric Power Corporation and the North Eastern Electric Power Corporation,” Maganti said. The project cost is to the tune of Rs 1098 crores.
Soma Enterprise is also looking to invest in hydropower projects in Arunachal Pradesh. It has bid for 5 hydroelectric projects in the state. “Since hydroelectric projects are full of uncertainties of environment and nature not very many private parties are interested in venturing into hydroelectric power generation sector,” Maganti said.
Maganti said the company will also bid for city side development of the Kolkta, Chennai and the 35 non-metro airports being developed by the Airports Authority of India.
Source: Hindustan Times