IPO of Dilip Buildcon subscribed 20 times

The Rs 650-crore initial public offering (IPO) of infrastructure firm Dilip Buildcon saw 20 times more demand than shares on offer. The offering closed on Wednesday. The 21.4-million share offering saw 444 million bids, data provided by stock exchanges showed.

The high net worth (rich) investor portion of the IPO was subscribed around 80 times, while the institutional (big money) investor portion saw nearly 10 times more demand than shares on offer. Demand was lukewarm in the retail (small) investor segment, with the category seeing only two times subscription. Around 50 per cent of the issue was reserved for institutional investors, 35 per cent for retail investors, and 15 per cent for high net worth individuals (HNIs). The company raised Rs 430 crore by issuing fresh shares in the IPO, while the remaining Rs 220 crore of the issue was offer for sale by the existing shareholders, including BanyanTree Growth Capital.

The price band for the IPO was fixed at Rs 214-219 per share. "On valuations, at the higher end of the price band, the company is available at a slight discount to its peers on an adjusted price-to-earnings basis (for FY2016 estimated EPS or earnings (profit) per share)," Angel Broking had said. The firm plans to deploy the capital raised from the IPO towards repayment of loans and for working capital requirements.

 

Bhopal-based Dilip Buildcon is a leading road-focused engineering, procurement, and construction (EPC) firm in the country.

Axis Capital, IIFL Holdings, JM Financial, and PNB Investment were the lead managers of the issue.