Dilip Buildcon IPO subscribed 9% on day one

Initial public offering of infrastructure firm Dilip Buildcon garnered nine per cent subscription today on the first day of the issue.
The public issue received bids for 19,01,120 shares as against 2,13,62,138 on offer, as per the information available with the stock exchanges.
The company, on Friday, raised a little over Rs 196 crore by allotting 89.58 lakh shares to anchor investors at Rs 219 apiece.
The anchor investors include Smallcap World Fund, Abu Dhabi Investment Authority, HDFC Trustee Company, Nomura Singapore, DB International (Asia), IDFC Infrastructure Fund and East Bridge Capital Master Fund.
Dilip Buildcon plans to mop up Rs 430 crore through fresh issuance of equity shares and an offer for sale of up to 10,227,273 shares, including the anchor portion.

The company has fixed a price band of Rs 214-219 per share. At the upper end of the price band, the public issue is expected to fetch Rs 654 crore.

The IPO, which opened today for public subscription, will close on August 3.
Proceeds of the issue will be utilised towards repayment of debt and meet working capital requirements.
Dilip Buildcon, which is primarily into construction of roads and highways, has an orderbook of almost 8,000 km worth of over Rs 11,000 crore to be executed over the next 2 years and a half.
The lead managers are Axis Capital, IIFL Holdings, JM Financial Institutional Securities and PNB Investment Services.

Earlier, the company had proposed to raise Rs 650 crore through the IPO. However, since the issue was delayed for over a year, Dilip Buildcon reduced the issue size to Rs 430 crore.