HPL Electric IPO gets off to slow start
Photo Credit: Shah Junaid/VCCircle

HPL Electric & Power Ltd saw just about 6% subscription for its initial public offering (IPO), on the first day, with only retail investors applying to invest in the firm.

Institutional investors stayed away from the issue while high net-worth and corporate investors bid for negligible number of shares. Retail investors bid for about 12% of the issue reserved for them, stock exchange data shows.

The company, which raised Rs 108.3 crore ($16 million) from anchor investors on Wednesday, had earlier pruned the size of its IPO by a fifth. The firm said in its red herring prospectus filed early this month that it is looking to raise up to Rs 361 crore in the issue as against Rs 450 crore when it filed draft papers for its IPO in February.

The electric equipment manufacturing company has disclosed that it intends to raise Rs 130 crore for retiring debt, the same quantum that it sought earlier. But it has pruned the amount it planned to use for working capital requirement from Rs 242.8 crore to Rs 180 crore. Rest of the money will go for general corporate purposes.

SBI Capital Markets, ICICI Securities and IDFC Bank are the bankers managing the issue.

HPL makes metering solutions, switchgears, lighting equipment and wires & cables.

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