New Delhi: The Rs 654-crore initial public offering of infrastructure firm Dilip Buildcon attracted massive demand as the offer got subscribed by around 21 times on the last day of bidding today.
The public issue received bids for over 44.37 crore shares as against more than 2.13 crore on offer, generating a subscription of 20.77 times, according to the National Stock Exchange (NSE) data.
The quota reserved for non-institutional investors witnessed a subscription of 21.17 times, while the same for qualified institutional buyers (QIBs) saw a subscription of 5.15 times as per the latest data available with the exchange.
Besides, shares reserved for retail investors was subscribed 61 percent.
Prior to this, Advanced Enzyme Technologies' IPO was oversubscribed by a staggering 116 times.
Dilip Buildcon, on Friday, raised a little over Rs 196 crore by allotting 89.58 lakh shares to anchor investors 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 1,02,27,273 shares, including the anchor portion.
The company has fixed the price band at Rs 214-219 per share.
Dilip Buildcon will raise Rs 654 crore through a combination of fresh issue and offer for sale at the upper end of the price band.
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.