Infrastructure development company Sadbhav Infrastructure Projects’ initial public offering (IPO) sailed through on Wednesday, assuring the company of at least Rs 425 crore. The issue — largely structured for institutional investors — received nearly 2.3 times, or 6.4 crore shares, in total bids.
The qualified institutional buyers’ (QIB) book was subscribed 3.04 times on the final day. Institutions applied for
4.4 crore shares against 1.4 crore shares reserved in the offer, data showed.
The non institutional book comprising high networth individuals (HNIs) received 1.66 times the bids. More than 1.158 crore shares were bid against 69.7 lakh shares on offer.
Retail individual applicants, whose investment should not exceed a total Rs 2 lakh as per Sebi rules, bid for 77.4 lakh shares against 46.5 lakh on offer. Up to 10% of the issue was reserved for retail investors unlike a 35% quota in accordance with Sebi rules, showed the company’s prospectus.
In 2012, Sebi had tweaked IPO rules by lowering the retail investor issue size to 10% from 35% for public issues of companies less than three-year ‘profitability’ track record. The changes were introduced to protect retail investors.
The company’s shares in grey market were quoting at Rs 5-15 premium per share. Grey market is a pseudo over the counter market where IPO shares are bought and sold before officially listing on a stock exchange.
Sadbhav Infrastructure’s public offering was subscribed 0.2 times on day 2 of the three-day IPO, stock exchanges data showed on Tuesday. Last Friday, the Ahmedabad-based subsidiary company of Sadbhav Engineering had raised Rs 210 crore by issuing a little more than 2 crore shares to anchor investors, including Nomura, Morgan Stanley, HDFC Mutual Fund, Tata Mutual Fund, Amansa and Tata AIA Life.
Sadbhav Infra’s IPO is 14th public issue on the main board this calendar. So far, 13 companies have tapped primary markets this calendar year and cumulatively raised close to Rs 6,000 crore – a three-year high.
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