Dilip Buildcon made a strong debut on the bourses on Thursday with the stock listing at R240, a 10% premium to the issue price of R219 per share. The stock went up by 11% to close at R251 and commands a market capitalisation of R3,445.91 crore. The company raised R654 crore.
With Dilip Buildcon having listed, 15 companies have now together raised nearly R10,500 crore between January and now through initial public offerings (IPO). In 2015 the amount raised by companies through IPOs was R13,614 crore. The infrastructure firm’s IPO was over subscribed by 20.8 times. Investors bid for 44.45 crore shares of the total 2.13 crore shares on offer.
The qualified institutional buyers (QIBs) bid for 6 crore shares of the 62 lakh shares on offer, an oversubscription of 9.7 times. High net-worth (HNIs) individuals bid for 36.21 crore shares of the 45.48 lakh shares reserved for them,79.63 times the quota. Retail investors bid for 2.18 crore shares of the 1.06 crore shares reserved for them.
The company reported a net profit of R197 crore in FY 16 on total revenues of R4,315 crore. The Bhopal-based, engineering, procurement, construction (EPC) firm proposes to utilise the net proceeds of the issue for prepayment or scheduled repayment of a portion of term loans and to meet working capital requirements.
Axis Capital, IIFL Holdings, JM Financial Institutional Securities and PNB Investment Services were the book running lead managers to the issue.