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Sadbhav Infra IPO beats market gloom, gets subscribed over 2 times

Sadbhav's strong show came a day after sluggish investor response saw Prabhat Dairy extending the period of its initial public offering (IPO) as well as cutting the price band.

twitter-logoPTI | September 2, 2015 | Updated 21:28 IST
Sadbhav IPO beats market gloom, gets subscribed over 2 times

Initial share sale of Sadbhav Infrastructure Project has been subscribed 2.24 times despite volatile market conditions.

Sadbhav's strong show came a day after sluggish investor response saw Prabhat Dairy extending the period of its initial public offering (IPO) as well as cutting the price band.

On the final day of subscription on Wednesday, Sadbhav's IPO attracted bids for more than 6.4 crore shares as against 2.86 crore scrips on offer. This translates to a subscription of 2.24 times, according to data available with stock exchanges till 1900 hours.

The bidding for the IPO began on August 31 and the price band was fixed at Rs 100-143 per share.

Retail investors' portion was subscribed 1.68 times while categories for qualified institutional buyers (QIBs) and high net worth individuals were subscribed 3.04 times and 1.66 times, respectively.

The company's IPO closed on a day when the benchmark Sensex tumbled 243 points to close at 25,453.56 points, its lowest closing level since August 8, 2014.

Sadbhav plans to raise Rs 425 crore through fresh issue of shares and an offer for sale of up to 32.36 lakh shares by existing investors, including the anchor investor segment.

The funds raised through the issue will be utilised for repayment of loans, equity investment and advancing of subordinate debt to its subsidiary Shreenathji Udaipur Tollway Pvt Ltd (SUTPL) and part-financing of the SUTPL project.

Meanwhile, Prabhat Dairy's IPO on Wednesday received bids for 1.49 crore shares against an offer of over 4.12 crore, a subscription of 36 per cent.

On Tuesday, the company had lowered the price band to Rs 115-126, from Rs 140-147. Besides, the Prabhat Dairy IPO was extended by three days to September 4 as the issue failed to generate interest among investors on its final day of offering. The issue was scheduled to close yesterday.

Prabhat Dairy opened the issue on August 28 to raise Rs 300 crore through fresh issuance and an OFS of up to 1,47,06,000 shares by existing shareholders.

Last week, IPOs of three companies-Shree Pushkar Chemicals and Fertilisers, Pennar Engineered Building Systems and Navkar Corporation-were oversubscribed.

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