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Engineering and construction major Afcons Infrastructure
is considering projects with some of the international
construction companies already working in Africa for
global petroleum majors.
Afcons, along with Japanese firm Hajima may work on a $2
billion project in Algeria. In Angola too, it may pitch
for a project with global engineering firm Bechtel.
It is also considering projects in Liberia.
S Paramasivan, executive director, Afcons, said: "We
want to focus on middle east and the Persian Gulf as
part of our current strategy".
He added: "We are in the final stages of negotiations
with many of the companies in Africa. We are already
building a jetty for Mauritius Port Authority in Port
Louis Harbour"
Booming oil prices were driving demand.
"A lot of petro dollars are flowing into Africa and the
African Development Bank is giving a fillip to
development projects in the continent. We are very
bullish on the African market and expect good bottomline
growth from our operations there," said Afcons managing
director K Subrahmanian.
When asked about the JV possibilities, he said: "We are
building the jetty in Mauritius ourselves. But in the
Persian Gulf region, we are partnering local companies.
Our strategy depends on technology needs and local
requirements". The company, which is floating a Rs 300 IPO later this year, is also planning to modernise its equipment.
It will spend Rs 125 crore from the IPO proceeds on equipment, another Rs 75 crore on repayment of debt and the balance towards strategic initiatives, Paramasivan said.
The company is planning to issue 1.6 crore shares, of that it is planning to reserve 3.21 lakh shares for its employees, through 100 per cent book building. The issue would constitute 18.37 per cent of the post issue paid-up capital of the company, he said.