NII category of Dilip Buildcon IPO subscribed 79.64 times

QIB category subscribed 9.76 times

Investors made a beeline for the initial public offer (IPO) of Dilip Buildcon (DBL). The IPO received bids for 44.76 crore shares. The IPO was subscribed 20.95 times. The bidding for the IPO ended yesterday, 3 August 2016.

Investor category wise data showed that the IPO received robust response from non institutional investors (NII). The NII category of the issue was subscribed 79.64 times. The IPO also got strong response from institutional investors and retails investors. The retail investors' category was subscribed 2.35 times. The Qualified Institutional Buyers (QIB) category was subscribed 9.76 times.

DBL's IPO was a combination of a fresh issue of shares aggregating to Rs 430 crore and the offer for sale (OFS) of 1.02 crore shares from promoters and group of private investors. The price band for the IPO was fixed at Rs 214-219 per share.

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 towards working capital and rest for general corporate purpose.

DBL raised Rs 196.19 crore from allotment of 89.58 lakh shares to a slew of anchor investors a day ahead of the opening of the IPO.

DBL is one of the leading road-focused engineering, procurement and construction (EPC) contractors in India with nearly 83% of total revenue of FY 2016 coming from execution of road focused EPC contracts in India. As of 31 March 2016, the company has an order book of Rs 10800 crore. The government contracts account for 76.27% of the total order book as on 31 March 2016. The businesses of the company are spread across 2 major segments viz. the construction segment and infrastructure development.

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).

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