HPL Electric, whose initial public offering opened on Thursday, was subscribed 0.06 times as as investors bid for 8.9 lakh shares of the total 1.4 crore shares on offer.
The IPO aims to raise `361 crore crore in a price band of `175-202 per share. The issue on the first day did not receive any bids for shares from Qualified institutional investors. Retail investors bid for nearly 0.12 times or 8.87 lakh shares of the 72.2 lakh shares reserved. High-net-worth individuals bid for 7,910 shares of the 30.9 lakh shares reserved for them, bidding 0.002 times.
On Thursday , the company allotted 53.61 lakh shares aggregating to an approximate amount of `108 crore to its anchor investors including HTCL-HDFC Prudence Fund, Birla Sun Life, Copthall Mauritius Investment, IDFC Sterling Equity Fund and Nomura, among others.
For the year ended March 2016, HPL Electric & Power’s total revenue grew by 6.6 % year-on-year and net profit was up by 5.78% at `36.6 crore. The Company is engaged in manufacturing electric equipment, including, metering solutions, switchgear, lighting equipment, wires, and cables.
Proceeds of the issue will be utilised for repayment of loans, to fund working capital requirements and for other general corporate purposes.
The Book Running Lead Managers (BRLMs) to the Issue are SBI Capital Markets Limited, ICICI Securities Limited and IDFC Bank Limited. Bids can be made for a minimum of 70 equity shares and in multiples of 70 equity shares thereafter.