Karda Construction slips on debut

Shares of Karda Construction were trading at Rs 142.80 at 11:43 IST on BSE, a discount of 20.67% over the initial public offer price of Rs 180.

Meanwhile, the S&P BSE Sensex was up 171.15 points or 0.52% at 33,139.83.

The stock debuted at Rs 136, a discount of 24.44% to the initial public offer (IPO) price. So far the stock hit a high of Rs 142.80 and low of Rs 136. On BSE, so far 90,000 shares were traded on the counter.

The IPO of Karda Constructions opened on 16 March 2018 and closed on 21 March 2018. The issue received bids for 1.09 crore shares, as per the National Stock Exchange of India (NSE) data. The issue was subscribed 2.54 times. The company had priced the IPO at the top end of the Rs 175 to Rs 180 a share price band.

Category-wise subscription details showed that the qualified institutional buyers (QIBs) category was subscribed 1.55 times, the non-institutional investors category was subscribed 3.44 times and the retail individual investors (RIIs) category received subscription of 2.01 times.

The issue comprised of an offer of upto 43 lakh equity shares comprising of a fresh issue of 23 lakh equity shares and an offer for sale of upto 20 lakh equity shares.

The company intends to utilize the proceeds from fresh issue towards part repayment of overdraft facilities, part repayment of term loans, general corporate purpose and to meet issue related expenses.

Karda Constructions reported a net profit of Rs 5.52 crore on sales of Rs 40.35 crore in the six months ended September 2017.

Karda Constructions, promoted by Naresh Karda, is engaged in the business of real estate development in the city of Nashik, Maharashtra.

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