Construction company PSP Projects has priced its initial public offering (IPO) aimed at raising Rs 211.68 crore in a band of Rs 205-210. The IPO is scheduled to open on May 17 and close on May 19. Anchor investors will be allocated shares on May 16. Bids can be made for a minimum of 70 shares and multiples of 70 thereof.
The offer consists of a fresh issue of shares worth Rs 151.20 crore and an offer for sale of shares worth Rs 60.48 crore.
The company plans to use the net proceeds of the fresh issue to fund working capital requirements of the company, capital expenditure, and general corporate purposes. The company will not receive any proceeds from the offer for sale.
For the nine months ended December 31, 2016, PSP Projects posted a consolidated net profit of Rs 20.7 crore. For the year ended March 31, 2016, the company posted a net profit of Rs 22.6 crore. According to the guidelines put out by the Securities and Exchange Board of India (Sebi), 50% of the shares are reserved for qualified institutional buyers (QIB) category, 15% for high net-worth individuals (HNIs) and 35% for retail investors.
Up to 60% of the qualified institutional buyers’ portion has been reserved for anchor investors and one-third of the anchor investor portion has been reserved for domestic mutual funds. Five per cent of the qualified institutional buyers’ category, excluding the anchor investor portion, has been reserved for mutual funds on a discretionary basis.
Karvy Investor Services and Motilal Oswal Investment Advisors are the book running lead managers to the issue.