Ramky Infra IPO oversubscribed 2.89 times

Ramky Infrastructure's Rs 350 crore initial public offer (IPO) got oversubscribed 2.89 times by the end of the issue today, with most of the bids coming in from institutional buyers.

The Hyderabad-based infrastructure developer's issue received bids for over 316 crore shares, as against 1.09 crore equities on offer, as per the latest available with the NSE.

"The issue has got overwhelming response from investors, especially in a scenario when there are a number of other IPOs are open. The response shows a strong demand for infra issue," Deutsche Equities India Managing Director-Head, Equity Capital Markets, Sanjay Sharma told PTI.

 

Enam Securities and Deutsche Equities (India) are the book running lead managers to the issue.

Ramky Infrastructure is the flagship company of the Ramky Group and has hit the market with an IPO priced in the range of Rs 405 to Rs 468 per share.

In the portion reserved for qualified institutional buyers, the issue got oversubscribed 10 times, sources said.

The IPO consists of fresh shares aggregating up to Rs 350 crore and an offer for sale of shares amounting to about Rs 180 crore. The public offer opened on September 21.

Ratings agency Crisil has given the IPO a grade of 3/5, indicating average fundamentals.

The company's order book value was Rs 7,431 crore at the end of March 31. It had added contracts worth Rs 3,147 crore to its order book during the April 1, 2010, to June 30, 2010, period.

In the 2009-2010 financial year, Ramky Infra posted a total income on a consolidated basis of Rs 2,251 crore. It had a net profit on a consolidated basis of Rs 128 crore during the same fiscal.