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PE-backed PNC Infratech makes tepid debut on bourses

Agra-based infrastructure firm PNC Infratech Ltd (PNC), which specialises in construction of highways, bridges, flyovers and airport runways, made a tepid debut on the stock exchange on Tuesday.

The scrip listed at Rs 381 a share, a modest premium over the issue price of Rs 378 each but soon fell and ended the first day at Rs 360 a unit on BSE, a discount of 4.7 per cent to IPO issue price, in a weak Mumbai market.

Early this month, the company's IPO was subscribed 1.54 times.

It had previously raised approximately Rs 146 crore (around $23 million) from a bunch of domestic and foreign investors who came as anchor investors ahead of its IPO.

PNC Infratech had filed draft red herring prospectus with SEBI in September 2014. The public issue, which raised Rs 486 crore, also provided a partial exit to PE firm Jacob Ballas.

Mid-market PE investor Jacob Ballas sold a little over one-fifth of its holding.

It holds 8.3 per cent stake post IPO, which is currently worth Rs 153 crore. It is sitting on approximately 50 per cent upside on its four-year-old investment.

Of the fresh issue proceeds in the IPO, the company would use Rs 150 crore to fund working capital requirements besides putting in Rs 35.2 crore to repay debt. In addition, it plans to use Rs 65 crore to invest in a subsidiary, PNCRHPL for part-financing the Raebareli-Jaunpur project besides Rs 103 crore as investment in capital equipment.

In 2009, PNC Infratech planned to raise Rs 175 crore through IPO but later withdrew its plan due to poor market conditions.

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