The initial public offering (IPO) of Dilip Buildcon, on day two, was subscribed 0.69 times with investors bidding for 1.48 crore shares of the total 2.13 crore shares on offer. The price band for the issue has been fixed at R214- R219 per share.
The qualified institutional buyers (QIBs) category, which received no bids on day one was subscribed 0.16 times with investors bidding for 10.43 lakh shares of the 62 lakh shares on offer. High net-worth individuals (HNIs) bid for 46.55 lakh shares of the 45.48 lakh shares reserved for them,1.02 times the quota. Retail investors bid for nearly 0.67 times of their quota or 71.63 lakh shares of the 1.06 crore shares reserved for them.
On Friday, the company raised R196 crore by allotting 8.95 lakh shares to its anchor investors at a price of R219 apiece. Among the investors who were allotted shares in the pre IPO placement include Nomura Singapore, HDFC Trustee company, Small Cap World Fun, Abu Dhabi Investment Authority, PGGM World Equity and DB International (Asia). The issue opens on Monday, August 1 for public subscription.
Bhopal-based, engineering, procurement, construction (EPC) firm, is targeting a collection of 654 crore (when calculated at the upper end of the price band), from the IPO. The issue comprises a fresh issue equity shares aggregating Rs 430 crore and an offer for sale (OFS) of over 1.02 crore shares by the existing promoters Devendra Jain, Dilip Suryavanshi and BanyanTree Growth Capital, LLC, post issue the stake of the promoters will be reduced by 3%, 2% and 69% respectviely.
According to guidelines put out by markets regulator Sebi, 50% of the shares are reserved for QIBs, 15% for HNIs and 35% for retail investors. Up to 60% of the QIB portion has been reserved for anchor investors and one-third of the anchor investor portion has been reserved for domestic mutual funds.