SBI Buys 7.8% Stake In ARSS Infrastructure

Bhubaneswar: The State Bank of India (SBI has bought 7.79 per cent equity in the Orissa-based ARSS Infrastructure Projects Limited. The deal was for 10 lakh shares out of the company''s total equity base of 1, 25, 54,000 shares of Rs 10 each. SBI is keen on acquiring more stakes but the company restricted it to 8 per cent as it intended to go for an initial public offer (IPO) soon. The company intends to dilute another 20-25 percent stake through the IPO, which is expected to hit the market towards the end of 2007-08 or in the first half of 2008-09, he added. ARSS Infrastructure is one of the largest infrastructure companies in the eastern zone and is engaged in the business of construction of railway lines, highways, irrigation and building projects. It has chalked out an expansion plan to enter new markets in India and abroad. The clients of the company include Ministry of Railways, Government of Orissa, Rail Vikas Nigam Limited, Rail India Techno-Economic Services (RITES), National Thermal Power Corporation (NTPC), Hindustan Petroleum Corporation (HPCL), Indian Oil Corporation (IOCL), National Highway Authority of India (NHAI) and National Highways among others.

ARSS has taken up Rs 100 crore Dosha-Gangapur new line in Rajasthan, Rs 100 crore Salem-Karur new line, Rs 110 crore railway siding project of NTPC-Ispat in Chhattisgarh, Rs 240 crore Cuttack-Paradip rigid pavement project, Rs 80 crore bus rapid transit system (BRTS) project of the Rajasthan government and improvement of four roads in Tamil Nadu at a cost of Rs 190 crore. Moreover, the company along with its Indonesian firm PT Adhikarya, is executing 3 major rail projects in Orissa which include Cuttack-Barang (second line), Barang-Khurdha (third line) and Barang-Raja Athagarh (second line) at an estimated cost of about Rs 430 crore. Meanwhile, the company plans some infrastructure projects in public-private-partnership (PPP) mode and is in dialogue with various governments in this regard.