Simplex Projects Ltd is entering into the retail car parking space and wants to sell semi-automatic car parking solutions to society-managed apartments and multiplexes.

The Rs 130-crore construction company, which specialises in automated multi-level car parking system, will soon put up model car parking space in four metros to showcase the semi-automatic technology it is getting from a Korean company.

Said Pradeep K Mishra, senior vice-president (finance & accounts), “We believe there is a market for retail car parking technology specially in cities where parking costs are gradually increasing. The technology will enable, say, four cars to be stacked up on one another.”

According to Mishra, monthly car parking fees in apartments at Nariman Point in Mumbai could be as high as Rs 15,000.

Mishra said Simplex, to begin with, would bring four prototype models from the Korean firm. “Once the technology transfer is over, we will start manufacturing the entire system in Kolkata.”

Simplex on Thursday signed a technology transfer agreement with EWW, a Dutch company, for a fully automated car parking system. It will sign another agreement with the Korean company for the technology transfer of the semi-automated parking system.

The money to fund these technology collaborations comes from the private placement of 14 lakh shares at Rs 70 per share to Enam Securities. “We are spending part of the proceeds on technology acquisition.”

Simplex Projects has created a fully-automated multi-level car parking system for 280 cars on built-own-operate & transfer (BOOT) basis for a period of 20 years at New Market, Kolkata.

The company is working with the Delhi Municipality Corp as a consultant for development of 11 car-parking zones. Simplex will develop another three zones itself.

The company is also planning for an initital public offer of 30,00,000 equity shares and plans to raise around Rs 50 crore.

SPL is an ISO 9001:2000 certified construction company and is providing integrated engineering, procurement and construction services for civil & Structural construction and infrastructure sector projects.

SPL’s focus area includes:

Piling and Foundations
Civil construction projects, which include structures such as commercial and residential complexes, mass housing projects, townships, industrial structures;
Transportation engineering projects including bridges, flyovers, underpasses, road projects; and
Irrigation, Water supply and Sewarage Schemes.
Installation and operation of Multi Level Car Parking Systems.

SPL’s portfolio of completed and ongoing civil construction projects includes commercial and residential buildings, group housing projects and townships, industrial structures, hospitals and universities and educational campuses. The infrastructure portion of projects fall broadly into the categories of transportation engineering, and irrigation & water supply. In the transportation engineering category, SPL has constructed roads, bridges, flyovers and underpasses. In the irrigation & water supply category, SPL has built water supply and sewerage projects. The Company has also completed various piling projects.

SPL’s portfolio of completed and ongoing civil construction projects includes commercial and residential buildings, group housing projects and townships, industrial structures, hospitals and universities and educational campuses. The infrastructure portion of projects fall broadly into the categories of transportation engineering, and irrigation & water supply. In the transportation engineering category, SPL has constructed roads, bridges, flyovers and underpasses. In the irrigation & water supply category, SPL has built water supply and sewerage projects. The Company has also completed various piling projects.

• Piling and Foundations
• Civil construction projects, which include structures such as commercial and residential complexes, mass housing projects, townships, industrial structures;
• Transportation engineering projects including bridges, flyovers, underpasses, road projects; and
• Irrigation, Water supply and Sewarage Schemes.
• Installation and operation of Multi Level Car Parking Systems.

SPL’s portfolio of completed and ongoing civil construction projects includes commercial and residential buildings, group housing projects and townships, industrial structures, hospitals and universities and educational campuses. The infrastructure portion of projects fall broadly into the categories of transportation engineering, and irrigation & water supply. In the transportation engineering category, SPL has constructed roads, bridges, flyovers and underpasses. In the irrigation & water supply category, SPL has built water supply and sewerage projects. The Company has also completed various piling projects.

Objects of the Issue:

The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital for

1. Augment Long Term Working Capital Requirement;
2. Acquire Plant & Machineries;
3. Investment in Subsidiary for Purchase of Design and Technology for Semi and Fully Automated Multi Level Car Parking Systems.
4. Investment in Subsidiary for Development of Designs and Setting up of Fabrication Unit.
5. Investment in Subsidiary for meeting the expenses of Marketing and Promotion of Parking Systems.

Simplex Projects Limited IPO Information

»» Public Issue Open : July 10, 2007 to July 13, 2007
»» Public Issue Type : 100% Book Building Issue (Initial Public Offer IPO )
»» Public Issue Size: 30,00,000 Equity Shares of Rs.10/- each
»» Public Issue Price: Rs. 170/- to Rs. 185/- Per Equity Share
»» Market Lot: 30 Shares
»» Minimum Order Quantity: 30 Shares
»» Maximum Subscription Amount for Retail Investor: Rs 100,000/-
»» Listing : BSE, NSE
»» Lead Manager: UTI Securities Limited
»» Registrar : Cameo Corporate Services Ltd (Ph: 044-28460390 Email: simplex@cameoindia.com)
»» Simplex Projects IPO listing date, Simplex BSE Code, Simplex NSE Symbol :

• Listing On: Friday, August 03, 2007
• BSE Script Code: 532877
• NSE Symbol: SIMPLEX
• Listing in: B1 Group of Securities in BSE
• ISIN: INE898F01018
• Issue Price: Rs. 185/- Per share (Face Value of Rs. 10/-)

Bidding Status (IPO Subscription day by day)

› Download Prospectus – with SEBI

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Major bids by the Non Institutional Investors

Simplex Projects IPO ended with 85.53 times subscription. The issue received total bids for 25.66 crore shares compared with total issue size of 30 lakh shares.

The total bids in the Qualified Institutional Buyers (QIBs) category were 13.56 crore shares. In this category, the Foreign Institutional Investors bid for 6.25 crore shares, the Domestic Financial Institutions 5.60 crore shares and the Mutual Funds bid for 1.58 crore shares.

The Non Institutional Investors bid for 6.92 crore shares. The Retail Investors bid for 5.17 crore shares, of which, 4.97 crore shares were bid at cut off price and 20.17 lakh shares were bid at fixed price.

The Kolkata-based firm had set a price band between Rs 170 – 185 a share.

At the offer price band of Rs 170-Rs 185, the PE range on the basis of standalone FY 2007 EPS of Rs 8.70, works out to 19.5 to 21.3

The funds would be used for long-term working capital and to acquire plant and machinery.

Simplex posted a net profit of Rs 10.49 crore for the year ended March 2007, on sales of Rs 135.76 crore.

Simplex specialises in piling and foundation, civil construction and transportation engineering projects.

SIMPLEX PROJECTS LTD – IPO

Type of Issue : Book Built
Issue Opens: 10 July, 2007
Issue Closes: 13 July, 2007
Issue Size : 3,000,000 (No. of Shares)

Lower Price Band: Rs.170
Upper Price Band: Rs.185
Total Issue Size: RS.56 Crores

Application Multiple: 30 and in multiples there off starting with at least 30 shares.

Maximum Shares: 540 (for Retail)

Information URL : http://www.simplexprojects.com/
Prospectus URL : http://www.sebi.gov.in/dp/simplexdrfredher.pdf

Company Details :
Address : 12/1, NELLIE SENGUPTA SARANI, KOLKATA – 700 087.
Email : ipo@simplexprojects.com
Contact Details : 913332923330 /913322528013 (fax)

ISSUE Description:
Company Background:

Simplex Projects Limited, is an ISO 9001:2000 certified construction company providing integrated engineering, procurement and construction services for Civil and Structural construction and Infrastructure projects.
Simplex Projects is in the construction business since 1990 and has worked in 16 states in the country focusing on areas such as:
• Piling and Foundations
• Civil construction projects, which include structures such as commercial and residential complexes, mass
• Housing projects, townships, industrial structures;
• Transportation engineering projects including bridges, flyovers, underpasses, road projects; and
• Irrigation, Water supply and Sewarage Schemes.
• Installation and operation of Multi Level Car Parking Systems.

Multi-Level Automated Car Parking System
(Subsidiary – Simpark Infrastructure Pvt. Ltd.)
A wholly owned Subsidiary, Simpark Infrastructure Private Limited is engaged in the business of Installation, Development, Operation and Maintenance of Multi-level Automated Car Parking Systems. The business plan focuses attention on the aspect of alleviation of the problems associated with vehicular parking, the alternate technologies which have replaced the conventional modes of parking garages resulting in higher ground area utilization.

The Company’s portfolio of completed and ongoing civil construction projects includes commercial and residential buildings, group housing projects and townships, industrial structures, hospitals and universities and educational campuses. In the infrastructure portion of the company’s business, their projects fall broadly into the following categories: transportation engineering, and irrigation & water supply. In the transportation engineering category, They have constructed roads, bridges, flyovers and underpasses. In the irrigation & water supply category, they have built water supply and sewerage projects. The company has also completed various piling projects. Further, their Subsidiary is involved in the business of installation, development, operation and maintenance of multi-level Automated Car Parking Systems. Their Subsidiary has already completed one multilevel fully automated car parking project for 214 cars while the second underground fully automated parking project for 250 Cars is partially operational and remaining part is in the final stages of completion.

Their Plant and Equipment resources consist of large fleets of piling and construction equipment like Piling Rigs, Boring Equipment, Modern Batching Plants, Excavators, Dumpers, latest Cranes and many more. Their fleet of piling equipments is among the largest in Eastern India. They have technical collaborations with International construction companies for advanced techniques for construction business.

The company had entered into an agreement with EWW Verenigde Bedrijven, a Dutch company, for transfer of technology relating to designs, construction, commissioning and installation of parking systems for India, South-East Asian countries, Sri Lanka and other companies.

Objective:

Augment Long Term Working Capital Requirement;
• Acquire Plant & Machineries
• Investment in Subsidiary
a) For Purchase of Design and Technology for Semi and Fully Automated Multi Level Car Parking Systems.
b) For Development of Designs and Setting up of Fabrication Unit.
c) For meeting the expenses of Marketing and Promotion of Parking Systems.
• Meeting the Public Issue Expenses
Key Financials for the year ended March 31, 2007
Revenue Rs.1362.42Mln PAT Rs.123.84Mln
EPS Rs.15.47/- RONW 20.80%

Recommendation :

Pioneer in the Autumated Muti-level Car Parking, besides specialization in their piling business gives Simplex an edge. Apply for listing gains.

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