Sadbhav Engg jumps as unit files for IPO

Sadbhav Engineering rose 4.93% to Rs 277.90 at 9:42 IST on BSE after the company said its subsidiary, Sadbhav Infrastructure Project, has filed initial papers with the market regulator for raising up to Rs 600 crore through an initial public offering

The announcement was made after market hours yesterday, 3 December 2014.

Meanwhile, the BSE Sensex was up 150.49 points, or 0.53%, to 28,593.20.

On BSE, so far 63,000 shares were traded in the counter, compared with an average volume of 35,830 shares in the past one quarter.

The stock hit a high of Rs 284.75 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 272.60 so far during the day. The stock hit a 52-week low of Rs 73.15 on 6 March 2014.

The stock had outperformed the market over the past one month till 2 December 2014, rising 9.94% compared with 2.07% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 22.64% as against Sensex's 5.27% rise.

The mid-cap company has an equity capital of Rs 17.15 crore. Face value per share is Re 1.

Sadbhav Engineering said that its unit, Sadbhav Infrastructure Project, has filed its draft red herring prospectus with the Securities and Exchange Board of India (Sebi) on 3 December 2014 in order to undertake an initial public offering (IPO) of its equity shares. The issue consists of a fresh issue of equity shares of Rs 10 each aggregating up to Rs 600 crore and an offer for sale of up to 1.6 crore shares by Xander Investment Holding XVII and up to 1.6 crore shares by Norwest Venture Partners VII-A-Mauritius.

Net profit of Sadbhav Engineering declined 63.88% to Rs 10.14 crore on 58.39% rise in net sales to Rs 594.62 crore in Q2 September 2014 over Q2 September 2013.

Sadbhav Engineering is a leading engineering and construction company.

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