Mumbai: Construction company Dilip Buildcon Ltd’s initial public offering (IPO) was subscribed 70% at the end of the second day when high net worth individuals (HNIs) led the show, according to the exchange data. The public issue received bids for over 1.48 crore shares as against more than 2.13 crore on offer till 5:00 p.m., according to the latest uptade available with the National Stock Exchange (NSE).
On Friday, the company 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 will conclude on Wednesday. Proceeds of the issue will be utilized 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 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.