VKS Projects' initial public offer (IPO) received bids for 50.10 lakh shares compared with 1 crore shares on offer, data showed on NSE as at 16:00 IST today. The IPO was subscribed 50% on the first day of bidding. The company is raising Rs 55 crore. The IPO will close on 4 July 2012. The company has fixed an IPO price band of Rs 55 to Rs 60.

VKS Projects is engaged in the business of undertaking EPC/turnkey item-rate contract for mechanical, piping and heavy equipment erections for various industrial and infrastructure projects. Of late the company is also forayed into land development for industrial/infra projects.

VKS Projects proposes to use the proceeds of the issue to meet long term working capital requirement to the tune of Rs 15 crore, finance procurement of construction equipment/machinery of Rs 22.64 crore, finance setting up of engineering design studio/office and training centres in Chennai, Cochin, Delhi, Hyderabad and Ahmedabad of Rs 10 crore and balance for general corporate purposes and meet issue expenses.

The company's order book as at end of December 31, 2011 stood at Rs 98.25 crore, translating into 1.6 times of its revenue for the year ended March 2011 (FY 2011).

This issue has been graded by CRISIL and has been assigned the IPO Grade 1, indicating that the fundamentals of the issue are poor relative to other listed equity securities in India.