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NT Bureau
Chennai, Mar 9:

        Gremach Infrastructure Equipment and Projects Ltd, the provider of construction machinery, is tapping the capital market with a public issue of shares worth Rs 59 crore at a price band of Rs 75 and Rs 90 per equity share of Rs 10 each.

        The issue is open for subscription from 8 to 14 March. 'We are in the business of renting out construction machinery and equipment for the last 9 years. We provide on rent heavy construction, earth moving machinery to companies building roads, airports, power projects, bridges, dams, railways and mining. It makes business sense for the firms implementing the infrastructure projects to take these costly equipment on a rental basis as they would not like to block their money in procuring machinery which can be used for executing other projects as well and have quality equipment without any hassle,' said Rishi Raj Agarwal, managing director, Gremach.

        The company gross income and net profit have gone up from Rs 76 crore and Rs 4 crore for 2005-06 to Rs 83 crore and Rs 6 crore for the first nine months of the current fiscal.

        'With a view to expanding our existing operations and cater to the need of different equipment relating to infrastructure projects, we plan to invest in specialised areas. Further, we propose to acquire high end multi-purpose equipment as they are not readily available in the market and therefore a latent demand exists. This will enable the company to utilise the equipment effectively,' he said.

        The government's focus and increased allocation in the budget had resulted in large infrastructure projects taking off across the country, he observed.