MUMBAI (Commodity Online): Railways and road construction services provider, ARSS Infrastructure Projects Ltd (BOM:533163) hit the capital markets with a bang as the company stocks were listed on the Bombay Stock Exchange (BSE) with a 42% premium over the initial public offer price of Rs.450.

The stock debuted at Rs.640, a 42.2% premium over the initial public offer (IPO) price. ARSS Infrastructure Projects had raised Rs.113.04 crore through its recently concluded IPO that ended on 11 February 2010 with an over subscription of 47.62 times. The IPO, which opened on 8 February 2010, had a price band of Rs.410 to Rs. 450 per share.

Meanwhile, the key benchmark index, Sensex rose 0.68% to 16,888 points in the opening hour of trading on markets.

The company stocks touched a high of Rs.711 in early trades today. The firm is raising Rs.1.03 billion through the IPO which closed on Feb 11. The proceeds would be used for working capital, both for the company's existing and new projects.

ARSS Infrastructure Projects provides construction services for railway infrastructure, roads & highways and irrigation projects. The company has successfully executed over 86 projects involving construction of over 200 kilometer (km) of railway tracks. Besides rail projects, AIPL is also into construction of roads and highways and irrigation projects.

Railway projects account for 41% of AIPL's unexecuted order book of Rs.2877.53 crore (as on 10 January 2010). Road projects account for 41% and 3% of the order backlog comprises irrigation projects. The company reported a net profit of Rs.51.04 crore on sales of Rs.624.38 crore in the year ended March 2009.

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