Dilip Buildcon IPO subscribed 70 per cent on Tuesday on the second day of the public offer till 5 pm. The issue received bids for 1,48,52,695 shares as against 2,13,62,138 on offer, according to the data available with stock exchanges. The EPC player on July 29 had garnered a little over Rs 196 crore by allotting 89.58 lakh shares to anchor investors at Rs 219 per share. The list of anchor investors include East Bridge Capital Master Fund, IDFC Infrastructure Fund, Smallcap World Fund, Abu Dhabi Investment Authority, DB International (Asia) and HDFC Trustee Company and Nomura Singapore.
The company has fixed a price band of Rs 214-219 per share for the initial public offer. Axis Capital, IIFL Holdings, JM Financial Institutional Securities and PNB Investment Services are the book running lead managers for the issue.
Post IPO, promoters shareholding in the company will decline to 75.60 per cent from 90.2 per cent (pre-issue).
The company had posted a CAGR (compounded annual growth rate) of 36 per cent and 19 per cent in standalone revenue and net profit figures in the past five years. During the period, the order book multiplied by 4 times on account of strong business development activities.
Brokerage firms Reliance Securities and Angel Broking has ‘Subscribe’ rating on the issue. Howver, Choice Broking said, “We recommend a ‘Subscribe with Caution’ rating for the public issue.