Infrastructure developer Ashoka Buildcon's initial public offer (IPO) was subscribed 90 per cent by end of the first day of issue today, with maximum bids coming in from non-institutional investors.
The issue, through which the company aims to garner up to Rs 225 crore, received bids for 56.13 lakh shares, against 62.18 equities on offer, thus getting subscribed 90 per cent, as per National Stock Exchange (NSE) data.
In the portion set for non-institutional investors, the IPO was oversubscribed 4.52 times and in retail 14 per cent, the NSE data showed.
In the Qualified institutional buyers category, the issue got demand for 58 per cent by the end of today's trade.
The company is engaged in the building and operation of roads and bridges on a build, operate and transfer basis and has come out with its IPO priced in the range of Rs 297 to Rs 324 per share. The issue closes on September 28.
Yesterday, the company had raised Rs 40.3 crore through the anchor investors to whom it will allot 12,43,750 shares at a price of Rs 324 -- the upper end of price range.
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The anchor investors include DSP Blackrock, Reliance Life Insurance, AIG Global, Axis MF, Citigroup and JM Financial MF.
Ratings agency Crisil Equities has assigned a grade of 4/5 to the proposed IPO, indicating that the fundamentals of the issue are above average.
In fiscal 2009 and fiscal 2010, Ashoka Buildcon had registered a consolidated total income of Rs 533 crore and Rs 814 crore (up 53 per cent), respectively. It had posted a consolidated net profit of Rs 34 crore and Rs 80 crore (up 135 per cent) for each respective financial year.
Enam Securities and IDFC Capital are the book running lead managers to the issue. Motilal Oswal Investment Advisors is the co-book running lead manager to the issue.
Meanwhile, the IPO of Cantabil Retail was subscribed 59 per cent by the end of third of issue today. The IPO, which opened on September 22, closes on September 26. The Rs 105 crore issue has been priced in the range of Rs 127 to Rs 135 a share.