Shares of Sadbhav Infrastructure will list tomorrow on BSE and NSE. In a statement, BSE said the shares of the infrastructure company will be listed in the B group. The IPO of the Ahmedabad-based infrastructure player concluded in the beginning of September with a total subscription of 2.2 times. The company received bids for 6.41 crore shares against the net issue of 2.85 crore shares. The subsidiary of Sadbhav Engineering aimed to mobilize funds between INR489.71 crore and 491.65 crore through the IPO which was priced in a range of INR100 – 103 per share. Given the positive subscription, allocation has been done at INR103 per share.
Existing investors Norwest Venture Partners and Xander Investment Holding offered 32.35 lakh shares each in the IPO while the company raised INR425 crore through issue of fresh shares. Earlier, the road infrastructure player roped in anchor investors which played an important role in easing concerns about the volatile secondary market. Out of the INR425 crore it will get from the IPO, Sadbhav Infrastructure plans to use INR264.8 crore towards debt repayment while another INR82 crore are earmarked for investment in its SUTPL (Shreenathji – Udaipur Tollway Private Limited) subsidiary. The company has taken these loans from ICICI Bank Limited and parent Sadbhav Engineering. The strategy to raise public funds to pay back debt is unlikely to help the financial performance of Sadbhav Infrastructure in a big way as it had INR5,706.1 crore in long term borrowings as on 31 March 2015.
Sadbhav Infrastructure’s listing comes at a time when sentiments are down in the market. Performance of the recently listed IPOs has not been great and investors have either lost money or have just made marginal gains in the stocks. These include Pennar Engineered Building Systems, Shree Pushkar Chemicals & Fertilisers, Navkar Corporation, and Power Mech Projects.