The Rs 400-crore IPO of Capacit’e Infraprojects, a construction firm focused on high-rise residential buildings, garnered a whopping 182 times subscription.
The 11.4-million share offering received bids for 2.08 billion shares, worth around Rs 52,000 crore. Market players said the high subscription was on the expectation of listing day gains.
Shares of the company were commanding a premium of over 50 per cent in the grey market.
The high net-worth individual (HNI) portion of the issue saw 638 times more demand than shares on offer. Investors in this category bet with leveraged money, in order to benefit from listing day gains. The retail portion of the issue was subscribed 16 times and institutional investor portion was subscribed 131 times.
The offering is likely to be priced at the top end of its price band of Rs 245 to Rs 250 per share. At Rs 250, the company is valued at 19 times its 2016-17 earnings, cheaper than listed peers such as Ahluwalia Contracts and PSP Projects, said, analysts.
Capacit’e plans to use the IPO proceeds of Rs 400 crore to meet its working capital requirements and purchase of assets.