Dilip Buildcon IPO sees stellar response, subscribed 20 times

NEW DELHI: The initial public offering of infrastructure firm Dilip Buildcon saw stellar response from investors on the final day of the issue.

The public issue received bids for 44,37,41,155 shares as against more than 2.13 crore on offer at the close of the issue, generating a subscription of 20 times, according to the latest data available with National Stock Exchange (NSE).

The quota reserved for retail investors was subscribed 58 per cent, while shares reserved for non-institutional and qualified institutional Buyers (QIBs) witnessed a subscription 21 and 5 times their respective allotted size, the data showed.

The company, on Friday, raised a little over Rs 196 crore by allotting 89.58 lakh shares to anchor investors at a price of 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 raise 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 the price band at Rs 214-219 per share. At the upper limit, the company is expected to raise around Rs 654 crore.

The bidding for the IPO concludes today.

Proceeds of the issue will be utilised towards repayment of debt and meeting working capital requirements.

Dilip Buildcon, which is primarily into construction of roads and highways, has an order book of almost 8,000 km, worth over Rs 11,000 crore, to be executed over the next two-and-a-half years.

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 fresh issue size to Rs 430 crore.