Varindera Constructions Plans Rs 1,200 Crore IPO

Varindera Constructions has filed papers with SEBI to mobilise Rs 1,200 crore through an IPO. The IPO includes a fresh issue worth Rs 900 crore and an Offer For Sale (OFS) worth Rs 300 crore. The funds will be used for purchasing equipment, working capital, debt payment, and corporate purposes.

Varindera Constructions has filed draft papers with the capital markets regulator SEBI to raise Rs 1,200 crore through an initial share sale.

The proposed IPO includes a fresh issue of equity shares valued at Rs 900 crore and an Offer For Sale (OFS) of shares worth Rs 300 crore by the company's promoters, according to draft documents submitted on Monday.

Under the OFS, Varinder Kumar Garg and Sushma Garg will offload shares worth Rs 201 crore and 99 crore, respectively.

The proceeds from the fresh issue will be allocated for purchasing new equipment, supporting working capital needs, debt repayment, and general corporate purposes.

Varindera Constructions, an integrated Engineering, Procurement, and Construction (EPC) company, has a diverse portfolio that includes residential buildings, office complexes, metro depots, and aircraft hangars.

Over the past decade, the company has completed 31 construction projects with a combined contract value of nearly Rs 5,300 crore. As of March 2024, it has 20 ongoing projects in India and abroad, with an order book worth Rs 3,845 crore.

ICICI Securities, IIFL Securities, and Equirus Capital are the book-running lead managers for the issue.

(With inputs from agencies.)