ARSS Infrastructure Projects has opened for subscription its initial public offering today through which the company plans to riase about Rs 103 crore.

The issue will close for subscription on February 11, 2010. The price band for the issue has been fixed at Rs 410-450 per share. At the upper price band the issue will constitute 16.67% of the post-issue equity capital of the company.

The capital raised form the issue will be used by the company for various purposes including Rs 5 crore for joint ventures, Rs 86 crore for meeting working capital requirements and the remaining for issue expenses and other administration expenses.

The company has more than 145 projects in hand with order book position at Rs 28.77 billion. The company carries out various activities including laying new rail tracks, construction of rail and road bridges, signaling and telecommunication work for railways, widening of roads, strengthening and repair of railway infrastructure, highways, bridges and irrigation projects.

Its client base includes Ministry of Railways, State Government of Orissa, Rail Vikas Nigam Limited, RITES Limited, IRCON International Limited, National Thermal Power Corporation, Hindustan Steel Corporation Limited, PWD - Orissa, IOCL and the National Highway Authority of India.

The agency CARE has assigned Grade 2/5 to the issue indicating a less than average performance is expected.

ARSS reported a net profit after tax of Rs 51.19 crore and total income of Rs 628.23 crore for the year 2008-09. The company has total debts of Rs 240 crore.

The book running lead managers to the issue are IDBI Capital Market Services Ltd and SBI Capital Markets Ltd. Bigshare Services Private Ltd is the registrar.