The intial public offering (IPO) of construction company PSP Projects was subscribed by 0.27 times on Thursday, the second day of its issue, as investors bid for 14.79 lakh shares of 55.44 lakh shares on offer. PSP Projects has priced its IPO in a band of Rs 205-210 with an aim to raise Rs 211.68 crore. The qualified institutional buyers (QIBs) bid for 1.26 lakh shares of 30.24 lakh reserved for them. High networth individuals (HNIs) bid for 2.35 lakh shares of the 15.12 lakh shares reserved for them, bidding 0.16 times. Retail investors bid for nearly 1.11 times or 11.17 lakh shares of the 10.08 lakh shares reserved.
PSP Projects on Tuesday raised Rs 95.25 crore from nine anchor investors ahead of its initial public offering (IPO). PSP Projects allotted 45.36 lakh crore shares at a rate of Rs 210 per piece. Investors acquiring shares in the anchor allotment include Reliance Capital, Axis Mutual Fund, Birla Sun Life Insurance, Sundaram Mutual Fund, IDFC Mutual Fund among others.
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. Karvy Investor Services and Motilal Oswal Investment Advisors are the book running lead managers to the issue.