Shares of Dilip Buildcon, which saw huge demand from high net worth individuals in the initial public offering, listed with a gain of almost 10 per cent at the bourses on Thursday.
The stock of Dilip Buildcon closed 14.95 per cent higher at ₹251.75 on the NSE as against the issue price of ₹219. During intra-day trade, it touched a high of ₹254.8. On the BSE, the stock gained 15.05 per cent to close at ₹251.95. Over 2.69 crore shares changed hands on the NSE, of which 35.94 per cent (or 96.80 lakh shares) were deliverable quantity.
According to NSE bulk deal data, Abu Dhabi Investment (15 lakh shares), East Bridge Capital Master Fund (11.68 lakh shares) and Swiss Finance Corporation (7.3 lakh shares) bought the company's shares on day 1 of listing. East Bridge Capital also bought another 9.24 lakh shares on the BSE as well.
The ₹654-crore Dilip Buildcon's IPO was subscribed 21 times. The IPO saw strong response from all kinds of investors. While retail investors' category was subscribed only 2.3 times, the portion set aside for qualified institutional buyers received bids for about 10 times.
However, heavy demand came in from HNI category, whose portion was subscribed by about 80 times.
Proceeds from the issue will be used towards repayment of debt and meeting working capital requirements, said the Bhopal-based firm.
Earlier ahead of the issue, Dilip Buildcon had raised ₹196 crore by allotting shares to anchor investors, who include Smallcap World Fund, Abu Dhabi Investment Authority, HDFC Trustee Company, Nomura Singapore, DB International (Asia), IDFC Infrastructure Fund and East Bridge Capital Master Fund.
Dilip Buildcon constructs road, bridges, is into irrigation, mining, and urban development projects. Its portfolio is diversified across 12 States, with Madhya Pradesh comprising close to 40 per cent of its order book followed by Andhra Pradesh (13 per cent) and Punjab (10 per cent).
Around 86 per cent of the current order book includes engineering, procurement and constuction (EPC) projects while 14 per cent comes from build-operate-transfer (BOT) projects. As on March 2016, the company owned 7,345 construction equipment and vehicles.