Pennar Engineered Building Systems ropes in anchor investors

Ahead of its IPO tomorrow, Pennar Engineered Building Systems has placed 26.32 lakh shares with seven anchor investors at the higher end of its IPO price band of INR170-178 per share. The pre-engineered buildings player has raised INR46.8 crore by placing the shares, the company said in a disclosure filed with the Bombay Stock Exchange (BSE).

Pennar Engineered Building SystemsAnchor investors are allotted shares from the qualified institutional buyer (QIB) quota and these shares are locked for 30 days from the date of allotment.

With 4.94 lakh shares, the Nomura Trust and Banking Company Limited emerged as the biggest participant in the placement while equal number of shares has been allotted to DSP Blackrock 3 Years Close Ended Equity Fund. Among other prominent players are Nomura Singapore Limited (3.06 lakh shares), HDFC Infrastructure Fund (2.8 lakh shares), and Kotak Emerging Equity Scheme (2.8 lakh shares). Religare Invesco Mutual Fund and Birla Sunlife Trustee Company Private Limited also participated through their mutual fund schemes.

The IPO will remain open for subscription between 25 August and 27 August. At the lower end of the price band, Pennar Engineered Building Systems’ IPO will mobilize INR151.77 crore. This can stretch to INR156.18 crore if investors follow the lead of anchors and bid at the higher end of the spectrum. The issue will be managed by Motilal Oswal Investment Advisors Private Limited, Axis Capital Limited and Karvy Investor Services Limited.

Read Also: IPO Review: Zephyr-backed Pennar Engineered Building Systems IPO opens on 25 August

The IPO will comprise a fresh issue of shares worth INR58 crore while 55.16 lakh shares will be sold by private equity player Zephyr Peacock and other investors. Zephyr Peacock plans to sell 50.1 lakh shares while Usha Ramani Potluri and Vikram Chachra will offload 2 lakh shares each. Through its two funds, Zephyr Peacock holds 83.59 lakh shares or 27% in the company. Out of the INR58 crore, INR34 crore will be used to lower interest costs by paying back loans while the rest will be used to purchase software and hardware and general corporate purposes.

Pennar Engineered Building Systems will compete with the mini IPO of Shree Pushkar Chemicals & Fertilisers that also opens tomorrow. Meanwhile, the IPO of Navkar Corporation received lukewarm response on the first day of bidding amid immense market volatility.

Read Also: Navkar Corporation IPO subscribed 13.7% on day one

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Vipin Mathur

By working in multiple cultures and segments of various organizations, Vipin has earned 15 years of experience in managing and organizing different operations. Most recently, he is associated with IPO Central as CEO. At IPO Central, he plays a leading role in management and operational practices. He also guides authors and researchers about the latest trends and news of upcoming IPOs.

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