1. Day 2: PNC Infratech IPO subscribed 0.14 times

Day 2: PNC Infratech IPO subscribed 0.14 times

Infrastructure construction company PNC Infratech’s initial public offering (IPO) was subscribed 0.14 times...

By: | Mumbai | Published: May 12, 2015 12:13 AM

Infrastructure construction company PNC Infratech’s initial public offering (IPO) was subscribed 0.14 times on the second day of the three-day offering. The company aims to raise R478 crore from the public issue that closes on May 12.

The institutional investors’ category was subscribed nearly 0.21 times. Qualified institutional buyers (QIBs) bid for 5.29 lakh shares against 25.74 lakh shares reserved for this category, data showed.

The Agra-based engineering, procurement and construction (EPC) company on Thursday raised R146 crore by issuing 38.62 lakh shares to institutional investors in a pre-IPO placement. The anchor allotment was made at R378 per share. The issue is priced in the range of R355-378 apiece.

Nine domestic as well as foreign institutions participated in the pre-placement offer. Notable names included HDFC AMC, Birla Sun Life AMC, Goldman Sachs, Kotak AMC, DSP Blackrock India and Reliance AMC.

The non-institutional category — comprising high net-worth individuals (HNIs) — bid for 4.35 lakh shares against a reservation of 19.31 lakh shares. The book was subscribed 0.226 times.

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Retail investors bid for 2.57 lakh shares against 45.05 lakh shares reserved for the category. Investors with less than R2 lakh investments are allowed to bid under this category. The employee category was subscribed 0.98 times of the 50,000 shares reserved. The offer comprises sale of 1.29 crore shares of which 1.15 crore shares are sold by the company and 14.21 lakh shares are sold by private equity player Nylim Jacob Ballas India (FVCI) III LLC.

After the issue, the shareholding of the promoter and the promoter group in the company will fall to 56.1% from 72.3%.

The company has planned to use the net proceeds to fund its working capital requirements (R150 crore), invest in its subsidiary (R65 crore), invest in capital equipment (R85 crore), repay certain debts (R35 crore) and for general corporate purposes, as stated in the regulatory filing.

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