KOLKATA: Punj Lloyd Ltd., one of the major Indian engineering companies, is planning to diversify into hydel projects, airport construction and light rail transport. The Joint Managing Director and Chief Operating Officer, V. K. Kaushik, said the company was now looking for acquisitions and partnerships in these new business areas.

Talking to media on Tuesday on the occasion of the company's initial public offer, he said the company, which was started in 1983, now had a presence in pipelines, storage tanks and terminals, process facilities, road and power projects. "We will like to go into new areas," he said.

Eyeing African markets

Describing the Rs. 1,920-crore turnover company as an Indian multinational, Mr. Kaushik said it had operations in West Asia, the Caspian region, Asia Pacific, and South Asia. It was now looking increasingly at Africa. It has subsidiaries in Kazakhstan and Indonesia. Of the Rs. 3,700 crore orders-on-hand, majority was in the South Asian region, three per cent in the Asia Pacific region, and the remaining was in the West Asian and Caspian region. However, Mr. Kaushik said that in the new areas, the company would first establish itself within the country before fanning out.

As for the maiden issue of 91.72 lakh shares for which a price band of Rs. 600-700 had been fixed per Rs. 10 share, the company was keen to achieve the benefits of listing on the stock exchanges, which it felt would enhance its brand name.

The company needs Rs. 150 crore for supplementing its capital equipment, and Rs. 300 crore for retiring its high-cost debt (through which it hopes to save Rs. 30 crore in interest annually). It plans to set up a war chest of Rs. 500 crore for equity investment in infrastructure projects, wholly owned subsidiaries and joint ventures.

Post-issue the shareholding of the Punj family will come down to 55 per cent from 67 per cent. The share of private equity investors will drop by about five per cent to 23 per cent while public holding has been pegged at 17 per cent against nil now.

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