Money Tree

Salient features of the Issue :

Issue Opens On : March 08,2007
Issue Closes On : March 14,2007
Issue Size : 59 Crore
Issue Type : Book Building
Face Value : Rs. 10/-
Price Range : Rs.75/- to Rs.90/-
Tick Size : Rs.1/-
Market Lot : 70

Minimum Order Qty : 70
Listing Stock Exchange : NSE, BSE

Background :

Gremach Infrastructure Equipments & Projects Ltd.(GIEPL) was incorporated as Gremach Commerce
private limited and then later on it was converted into a public Ltd and with effect from 9th august 2005, it possess the current name.
GIEPL rents construction equipments and machinery, such as excavators, pneumatic tyre rollers,dumpers, electronic sensors, pavers etc.

Main Objects of the Issue :

To acquire equipments used for construction of roads, used in mining activities, and construction and developments of ports.

Key Strengths :

The current market size of industry is Rs. 12.5 bn, estimated to increase upto Rs. 15bn over the next five years.
The estimated investments in this section over the financial year 2005 to 2010 is Rs. 124.65 bn.
Current budget outlay of Rs.9320 crores for National Highway development and general focus of Government on the infrastructure development will help private players in the field of infrastructure to grow.

Weaknesses :

GIEPL’s promotor and other group companies are also in the line of business and the company’s interests might clash with their interests.
Lack of long term contract and rising competition in infrastructure sector will pose a threat to the growth of the company.