Man Infraconstruction IPO subscribed 3 times

Man Infraconstruction's Initial Public Offer (IPO) has received a good response on the first day of opening today.
 
According to information available with the National Stock Exchange (NSE), the issue has been oversubscribed by 3 times with nearly 14 million bids for the 4.65 million shares on offer. It has fixed a price band of Rs 243 – Rs 252 for this book building issue that closes on February 22.
 
Mumbai-based Man is engaged in construction services for port infrastructure, residential, industrial, commercial and road infrastructure projects. It plans to raise up to Rs 142 crore by issuing 5.63 million equity shares (including 0.97 million equity shares to anchor investors) at a higher price band of Rs 252.
 
The company has already received a commitment of around Rs 25 crore from anchor investors that include Nomura Asset Management Singapore, Reliance Capital Trustee, Legg Mason Asian Enterprise Trust, Monsoon India Inflection Fund, Axis Mutual Fund Trustee and India Diversified (Mauritius), who have subscribed to 972,000 equity shares at Rs 252 per share.
 
The company will use the proceeds for purchasing capital equipment and has a consolidated order book position of Rs 2,021 crore as on date. It posted a consolidated revenue of Rs 594 crore for the year ended March 2009 as against Rs 236 crore in the previous year. Net profit more than doubled to during this period on a y-o-y basis to Rs 82 crore.