Pennar Engineered Building Systems Ltd's (PEBS) public issue is sailing low with the initial public offer (IPO) receiving bids for a mere 7 per cent of the shares as of the penultimate day of the issue, as per the data available with the stock exchanges.
The company, which delivers engineered steel building solutions, saw non-institutional investors (corporates and high net-worth individuals) picking just 4 per cent of the issue reserved for them with retail investors' portion covered 11 per cent. Institutional investors are yet to apply for shares in the IPO, as on day 2 of the issue.
Earlier, PEBS raised Rs 46.85 crore ($7 million) from a consortium of anchor investors including Nomura, Religare Invesco Mutual Fund, DSP Blackrock, HDFC Trustee Company, Birla Sunlife and others.
The issue, which will close tomorrow, started on a slow pace with just 2.5 per cent coverage on day 1.
The IPO is being managed by Motilal Oswal, Axis Capital and Karvy.
Existing investor Zephyr Peacock is looking to almost triple the value of its investment in the part-exit.
PEBS is part of the Pennar Group of Companies which consists of Pennar Industries, Pennar Chemicals and Saven Technologies. It has a manufacturing facility located at Anakapalli in Medak district in the new state of Telangana.
For more details on the IPO click here.