Dilip Buildcon IPO subscribed over 20 times

The Rs 650-crore initial public offering (IPO) of infrastructure firm Dilip Buildcon saw 20 times more demand than shares on offer. The 21.4-million share offering saw bids for nearly 444 million shares, data provided by stock exchanges showed.

The wealthy investor portion of the IPO was subscribed around 80 times, while institutional investor portion saw nearly 10 times more demand than shares on offer. Demand was relatively tepid in the retail segment with the category seeing just two times subscription.

Around 50% of the issue was reserved for institutional investors, 35% was reserved for retail and 15% for high networth individuals (HNIs). The company raised Rs 430 crore by issuing fresh equity shares in the IPO, while the remaining Rs 220 crore of the issue was offer for sale by existing shareholders, including BanyanTree Growth Capital.

The company plans to deploy the capital raised in the IPO towards repayment of loans and for working capital requirements.

Bhopal-based Dilip Buildcon is a leading road-focused engineering, procurement and construction (EPC) player in the country. Axis Capital, IIFL Holdings, JM Financial and PNB Investment were the lead managers to the issue.