Ramky Group’s subsidiary plans IPO in 2009

Hyderabad, India-based Ramky Group is planning an initial public offering for its infrastructure development firm Ramky Infrastructure in 2009. The company, which planned to go public last year, is looking to raise Rs 500 crore ($100 million) from the equity markets, according to the Financial Chronicle.

Ramky Group’s Chairman Ayodhya Rami Reddy said the delayed IPO was due to the stock market crash. Ramky Group claims to be India’s leading environment and waste management organization.

Ramky Infrastructure expects to use the funds for existing projects. The firm is responsible for projects ranging from roads and irrigation systems to canals, waste water and buildings. The company currently has Rs 7,000 crore ($1.4 billion) in booked orders, and expects that to increase to between Rs 10,000 crore ($2 billion) to Rs 12,000 crore ($2.4 billion) by the end of this fiscal year.

The company is also currently talking with private equity companies to drum up necessary funding, if its IPO plans don’t solidify.

Reddy told the Financial Chronicle he has ambitious plans for the group in the renewable energy sector. The company is also rumored to be exploring a photovoltaic cell manufacturing facility in Hyderabad, although the chairman declined to provide a timeframe for the project.

Cleantech investment in India was up in the second quarter of 2009, with Ramky Enviro Engineers (REE), another subsidiary of the Ramky Group, securing the largest deal of $42 million (see VantagePoint triple-dips in cleantech) from the private equity fund Standard Chartered Infrastructure Leasing & Financial Services Asia Infrastructure Growth Fund. REE plans to use the funds to provide solutions in waste management to the industrial, municipal and biomedical sectors. REE reportedly posted revenue of around $64 million (Rs 300 crore) for the year ending March 2009, and said it plans to go public in the next three to five years.

India took 11 percent of the world’s cleantech investment total in the second quarter, but hasn't ever had this percentage of the world’s share before, which could lead to a fall back next quarter (see Cleantech may have seen the worst, rebounding to $1.2B in 2Q09).

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