Simplex Projects Ltd, Construction Company is reported to hit the capital market on July 10 with its Initial Public Offer to raise up to Rs 55 crore to fund the taking over of plant and machinery and meet the working capital requirement.

According to the company officials, the company offers to issue 30 lakh equity shares of Rs 10 each through 100 % book building process. Fixing the price at Rs 170-185 per share, Simplex would raise 51 crore at lower end of the band. The issue will close on July 13.

According to the company release, the net issue would constitute 25 % of the fully diluted post-issue paid up capital of the company. UTI Securities is the book running lead manager of the issue. The company proposes to deploy the net proceeds of the issue to augment long-term working capital requirement, acquire plant and machineries and invest in subsidiary - Simpark Infrastructure Ltd.

The investment in subsidiary would be for the purchase of design and technology of semi and fully automated multi-level parking systems for setting up of a fabrication unit.

In 2006-07 fiscal year, the company has achieved a total income of Rs 136.24 crore and net profit of Rs 10.49 crore.