KNR Constructions Limited (the “Company”), an infrastructure project development company, will enter the capital market soon with an Initial Public Offering (“IPO”) of 7,874,570 equity shares of Rs 10 each for cash at a price (“Equity Shares”) to be decided through a 100% book-building process. The Bid/ Issue opens for subscription on January 24, 2008 , and closes on January 29, 2008 . The Price Band has been fixed between Rs 170 and Rs 180 per Equity Share.

The Issue comprises a Net Issue to public of 7,734,570 Equity Shares of Rs 10 each and a reservation for eligible employees of up to 140,000 Equity Shares of Rs 10 each for cash at a premium. The Issue and the Net Issue will respectively constitute 28.00% and 27.50% of the fully diluted post-issue equity share capital of the Company. The Equity Shares are proposed to be listed on Bombay Stock Exchange Ltd. (“BSE”) and The National Stock Exchange of India Ltd. (“NSE”).

Of the total equity float, up to 50% of the Net Issue shall be allocated on a proportionate basis to Qualified Institutional Buyers (“QIBs”), of which 5% shall be available for allocation on a proportionate basis to Mutual Funds only. Further, not less than 35% of the Net Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders and not less than 15% of the Net Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders.

The proceeds from this Issue are intended to be deployed for further equity investment in BOT projects and contribution towards the unsecured loan portion in the BOT Project (namely AP-07). The Issue proceeds will also be used for purchase of capital equipment; and for meeting working capital requirement.

Incorporated in 1995 by professionals having experience in the field of infrastructure development, KNR Constructions Ltd. provides engineering, procurement and construction (“EPC”) services across various fast growing sectors namely roads & highways, irrigation and urban water infrastructure management. Its project execution strength primarily is in road transportation engineering projects namely construction and maintenance of roads, highways, flyovers and bridges wherever integral to the projects undertaken. Its strong project management skills help them in timely and successful completion of projects. Over a period of time, it has gained expertise in construction of roads on EPC basis and further diversified into other infrastructure segments such as irrigation, water supply and urban water infrastructure management.

CRISIL has assigned a CRISIL IPO Grade ‘3/5’ to the proposed IPO. The grading assigned by CRISIL Limited reflects KNR Constructions Ltd.’s strong track record of project execution in both roads construction and operations and maintenance (“O&M”).

The Company is executing infrastructure projects independently as well as through joint venture partners. They are working on various road projects with its joint venture partner, Patel Engineering Limited with whom it has business association for the past 7 years. As on November 30, 2007, it had 25 projects on hand across various states in India covering Uttar Pradesh, Madhya Pradesh, Assam , Andhra Pradesh, Karnataka, and Tamil Nadu. The Company has the ability to bid, execute and implement medium and large size projects across various infrastructure segments.

The estimated unexecuted order book position as at November 30, 2007 was Rs. 17,338.25 million, which is approximately 5.4 times the operational income of FY 2006-07 on consolidated basis. On a consolidated basis the Operating Income, EBIDTA and PAT have grown at a CAGR of 58.38%, 111.88% and 108.22% over FY05 to FY07. The Company’s income (consolidated) increased to Rs 3,318.39 million in Fiscal 2007 as compared to Rs 1,115.99 million in Fiscal 2005. Its restated profit after tax (consolidated) increased to Rs 205.40 million in Fiscal 2007 as compared to Rs 41.19 million in Fiscal 2005. For the six months ended September 30, 2007 , the income (consolidated) was Rs 2,414.89 million and the restated profits were Rs 135.55 million.

KNR Constructions Ltd. has significant experience and strong track record in timely and successful execution of projects. It has earned significant reputation and goodwill in road construction sector, as demonstrated by the repeat orders received by it on continuous basis. It has a good clientele base and qualified and experienced employees led by a proven management team. It has expertise in sourcing and maintaining supply chain for raw material and a strong order book position.

Presently, the Company is executing 3 irrigation projects of which one is with its joint venture partner Backbone Projects Limited [KNR-BPL (JV)] and two with its joint venture partner Sri Laxmi Engineering Co. [KNR-SLEC (JV)] with a contract value of its share including the value of work sub-contracted by KNR-BPL (JV) aggregating approximately Rs 1, 912.80 million. As on November 30, 2007, it has executed work aggregating approximately Rs 456.34 million and balance order book aggregating approximately Rs 1, 456.46 million is under execution.

The Book Running Lead Manager (“BRLM”) to the Issue is Axis Bank Limited. The Co-Book Running Lead Manager (“CBRLM”) to the Issue is Batlivala & Karani Securities India Private Limited.

Sourced From: Adfactors Public Relations Pvt Ltd

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