B.K. Mundra, chairman and managing director of Simplex Projects, in Calcutta on Monday. Picture by Kishor Roy Chowdhury

Calcutta, July 9: City-based construction company Simplex Projects is entering the capital market with an initial public offering (IPO) of 30 lakh shares, comprising 25 per cent of the post-issue paid-up capital.

The IPO is open from July 10 to July 13, and the price band for the 100 per cent book-building issue has been fixed between Rs 170 and Rs 185 a share. The company aims to mop up Rs 55.50 crore at the upper end of the price band.

The proceeds will be used to meet long-term working capital requirements of the company and acquire plants and machinery.

It will also invest Rs 6 crore in its subsidiary — Simpark Infrastructure Ltd. Simpark, which builds car parking lots, will use the funds to buy design and technology for automated multi-level parking systems.

Simpark is developing multi-level car parking lots in the city and is also in talks with the Municipal Corporation of Delhi to build a similar facilities.

In 2006-07, total income of Simplex Projects was Rs 136.24 crore and net profit, Rs 10.49 crore.

According to an official, the company will focus on developing, designing and providing technology for semi- and fully-automated multi-level car parking systems and purchase of prototypes.

At present, around 25 per cent of Simplex’s revenues come from road and bridge projects.

The company is already handling new construction projects such as hospitals, market complexes and sewerages in Assam, Manipur and Sikkim.

Simplex has also signed a joint venture agreement with a Korean company to enter the retail parking space business. This joint venture will be formed through Simpark.