The initial public offering (IPO) of PSP Projects Ltd was subscribed around 8.6 times on the final day of the issue on Friday as investors rushed to bid for shares of the Ahmedabad-based construction firm.
The public offering of 5.54 million shares–excluding the anchor investors’ portion–received bids for 47.55 million shares, stock-exchange data showed.
Retail investors' portion was covered nearly 6.5 times for the quota reserved for them.
The portion set aside for non-institutional investors, such as corporate houses and wealthy individuals, was covered around 10.4 times. The portion earmarked for institutional investors was subscribed close to 8.4 times.
The IPO had seen a muted start on day one, with the issue subscribed a mere 7%. At the end of the second day, on Thursday, it was covered 27%.
Ahmedabad-based PSP is looking to raise as much as Rs 211.65 crore from the public issue. Of this, it mopped up Rs 95.26 crore from a bunch of anchor investors.
PSP allotted 4.53 million shares to nine institutional investors at the upper end of the price band of Rs 205-210 apiece. The company, which offers construction and allied services across industrial and residential projects, is seeking a valuation of $117 million.
PSP Projects had filed draft prospectus for an initial share sale on 29 December 2016. It received regulatory clearance on 24 March.
It joins several infrastructure and construction firms that are either planning to for public issues or have completed IPOs to list on bourses.
Delhi-headquartered GR Infraprojects Ltd is planning to go public with an estimated IPO size of Rs 500 crore.
Other infrastructure firms that went public in the past 18 months include Shankara Building Projects Ltd, Sadbhav Infrastructure Project Ltd, PNC Infratech Ltd, MEP Infrastructure Developers Ltd and Dilip Buildcon Pvt. Ltd.
The IPO by PSP Projects is the eight primary market offering this year. Companies that went public so far in 2017 include stock-exchange operator BSE Ltd, Avenue Supermarts Ltd which operates hypermarket chain operator D-Mart and FM radio operator Music Broadcast Ltd.
PSP Projects hopes to benefit from the rise in stock markets this year. Benchmark indices touched new highs on Wednesday.
For more details on PSP Projects’ IPO, click here.