Agra-based PNC Infratech has roped in anchor investors for its INR488 crore IPO. The company has allotted 38.6 lakh shares to anchor investors at INR378 per share, aggregating to approximately around INR146 crore. Goldman Sachs India, HDFC Trustee Company, Birla Sun Life Trustee Company, DSP Blackrock India, Reliance Capital Trustee Company, Reliance Mutual Fund, L&T Mutual Fund, Sundaram Mutual Fund and Kotak Mutual Fund are among the anchor investors.
Meanwhile, its IPO received a tepid response on the first day of bidding. Against the issue size of 95.1 lakh shares available to public and employees, the IPO received bids for only 1.16 lakh shares, revealed the combined data from NSE and BSE. This reflects a subscription of just 0.01 times. It is interesting to note that majority of these bids were received in the retail and employee categories while institutions and high net-worth individuals stayed away. The company has reserved 5 lakh shares to be allotted to eligible employees.
|PNC Infratech Limited IPO bidding (as on 8 May 2015)|
|Sr.No.||Category||No.of shares offered||No. of shares bid for||No. of times of total|
|1||Qualified Institutional Buyers (QIBs)||2574342||0||0.00|
|2||Non Institutional Investors||1930757||770||0.00|
|3||Retail Individual Investors(RIIs)||4505098||87990||0.02|
Including the anchor investors’ portion of 38.6 lakh shares, PNC Infratech’s IPO comprises a public issue of 1.29 crore shares to be issued in the price range of INR355 and INR378 per share. The infrastructure firm would raise around INR488 crore at the upper end of the price band and INR456 crore at the lower end. The offer comprises a fresh issue to the public of up to 1.15 crore equity shares by the company and an offer for sale of up to 14.2 lakh shares by the selling shareholder, Jacob Ballas India, which is divesting its 25% stake. The issue will close on 12 May 2015. The book running lead managers to the offer are ICICI Securities and IDFC Securities.
The company, which specializes in construction of highways, bridges, flyovers and airport runways, has projects in Rajasthan, Punjab, Haryana, Uttarakhand, Uttar Pradesh, Delhi, Bihar, West Bengal, Assam, Madhya Pradesh, Maharashtra, Karnataka and Tamil Nadu.
PNC Infratech is the seventh company to hit the capital markets this year. So far, six companies — UFO Moviez India, MEP Infrastructure Developers, VRL Logistics, Inox Wind, Adlabs Entertainment and Ortel Communications — have tapped the IPO route to raise funds.