Sadbhav Infrastructure IPO subscribed 20% until 1 September 2015

Gets bids for 57.82 lakh shares

Bids were received for a total of 57.82 lakh shares by the end of the second day of bidding for the initial public offer (IPO) of Sadbhav Infrastructure Project (SIPL) today, 1 September 2015. The IPO was subscribed 0.2 times or 20% based on the remaining 2.85 crore shares being sold through the book building route. SIPL has already finalized allocation of about 2.03 crore shares to anchor investors and thus the remaining 2.85 crore are on offer through the book building route. The issue closes on tomorrow, 2 September 2015.

SIPL raised Rs 210 crore by selling about 2.03 crore shares to a total of seven anchor investors before the opening of IPO. The shares will be allotted to the anchor investors at Rs 103 per share, the top end of the Rs 100 to Rs 103 per share price band for the IPO.

SIPL's IPO comprises of fresh issue of equity shares aggregating upto Rs 425 crore and an offer for sale of 64.71 lakh shares from two existing shareholders viz. Xander Investment Holding XVII and Nonvest Venture Partners VII-A-Mauritius. These two selling shareholders have put on block 32.35 lakh shares each.

Promoted by Sadbhav Engineering (SEL) and Vishnubhai Patel, SIPL was established to undertake roads, highways and related projects on a build-operate-transfer (BOT) basis for the Sadbhav group. The company's specialization is in development, operation and maintenance of highways, roads and related projects. The company intends to use about Rs 264.80 crore from the proceeds of the IPO for repayment and pre-payment of loans availed from ICICI Bank and from SEL. An amount of Rs 82 crore will be deployed towards equity investment and for advancing of sub-ordinate debt to subsidiary Shreenathji-Udaipur Tollway for part-financing of the project. The remaining funds will be used for general corporate purpose.

On consolidated basis, SIPL reported net loss of Rs 301.56 crore in the year ended 31 March 2015 (FY 2015), higher than net loss of Rs 155.94 crore in the year ended 31 March 2014 (FY 2014). Total sales rose 34.82% to Rs 500.30 crore in FY 2015 over FY 2014.

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