Receives bids for 19.01 lakh shares
Dilip Buildcon's (DBL) initial public offer (IPO) received bids for 19.01 lakh shares compared to 2.13 crore shares on offer, as per the data on the National Stock Exchange of India (NSE) website as at 17:00 IST. The IPO was subscribed 0.09 times on the first day of bidding today, 1 August 2016. The bidding for the IPO concludes on Wednesday, 3 August 2016.
DBL's IPO comprises of fresh offer of Rs 430 crore. In addition to this, there is an offer for sale (OFS) of 1.02 crore shares comprising of promoters and group of private investors.
Ahead of the opening of IPO, DBL had raised Rs 196.19 crore from allotment of 89.58 lakh shares to a slew of anchor investors. Shares have been allotted to anchor investors at Rs 219 per share - the top end of the Rs 214-219 per share price band for the company's IPO. Among the anchor investors, Smallcap World Fund, Inc was allotted 20.33 lakh shares constituting 22.7% of the total allocation to anchor investors. Among other anchor investors, American Funds Insurance Series Global Small Capitalization Fund was allocated 7.06 lakh shares, Abu Dhabi Investment Authority - Behave was allotted 11.87 lakh shares, PGGM World Equity II B.V. was allocated 5.93 lakh shares, HDFC Mutual Fund was allotted a total of 27.36 lakh shares under various schemes, Grandeur Peak Emerging Markets Opportunities Fund was allotted 4.56 lakh shares, East Bridge Capital Master Fund was allocated 3.15 lakh shares, Nomura Singapore was allotted 3.65 lakh shares, DB International (Asia) was allotted 3.15 lakh shares and IDFC Infrastructure Fund was allotted 2.46 lakh shares.
DBL is one of the leading road-focused engineering, procurement and construction (EPC) contractors in India with nearly 83% of total revenue of FY 2016 coming from execution of road focused EPC contracts in India. As of 31 March 2016, the company has an order book of Rs 10800 crore. The government contracts account for 76.27% of the total order book as on 31 March 2016. The businesses of the company are spread across 2 major segments viz. the construction segment and infrastructure development.
The company intends to utilise the proceeds from the fresh offer of Rs 430 crore towards repayment of term loans of around Rs 203.60 crore, Rs 200 crore towards working capital and rest for general corporate purpose.
DBL's consolidated net profit rose 124% to Rs 196.60 crore on 56% growth in net sales to Rs 4315.40 crore in the year ended 31 March 2016 (FY 2016) over the year ended 31 March 2015 (FY 2015).
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