Dilip Buildcon sees good debut

Shares of Dilip Buildcon were trading at Rs 250 at 10:46 IST on BSE, a premium of 14.16% over the initial public offer price of Rs 219.

The stock debuted at Rs 240, a premium of 9.59% over the initial public offer (IPO) price. So far the stock hit a high of Rs 253.95 and low of Rs 239.25. On BSE, so far 45.65 lakh shares changed hands in the counter.

Dilip Buildcon (DBL) had priced its initial public offer (IPO) at Rs 219 per share, the top end of the 214-219 per share price band for the issue. The DBL IPO ended on 3 August 2016. It received bids for 44.76 crore shares. The IPO was subscribed 20.95 times.

DBL is one of the leading road-focused engineering, procurement and construction (EPC) contractors in India. From the proceeds of the fresh issue, DBL has earmarked Rs 430 crore towards repayment of term loans of around Rs 203.60 crore, Rs 200 crore for meeting working capital requirements and rest for general corporate purpose.

DBL's consolidated net profit rose 124% to Rs 196.60 crore on 56% growth in net sales to Rs 4315.40 crore in the year ended 31 March 2016 (FY 2016) over the year ended 31 March 2015 (FY 2015). As of 31 March 2016, the company had order book of Rs 10800 crore. Government contracts accounted for 76.27% of the order book as on 31 March 2016.

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