Simplex Infra is expected to raise Rs.300-400 Cr through a Private placement. The process is likely to get completed in the next 2 weeks. In our Q2FY08 result update dated Oct 30, we had assumed that Simplex would issue 5 Mn shares at Rs.550, thereby raising Rs.275 Cr. However, since then the stock has run up quite a bit and keeping in mind today’s closing price of Rs.680, we now assume issue of 5 Mn shares at Rs.700. This is likely to lead to reduction in debt levels accompanied by a saving on the interest cost front, thereby improving FY08E EPS from Rs.19 to Rs.20. At this level, the stock would trade at a P/E of 34 times FY08E and 21 times FY09E.