Agra-based infrastructure firm PNC Infratech Ltd (PNC), which specialises in construction of highways, bridges, flyovers and airport runways, has raised approximately Rs 146 crore (around $23 million) from a bunch of domestic and foreign investors who have come as anchor investors ahead of its initial public offer which opened for subscription on May 8.
The infrastructure company has allotted 3.86 million equity shares at a share price of Rs 378, the upper end of the price band, to nine anchor investors, including mutual fund schemes of HDFC AMC, Birla Sun Life AMC, Kotak Asset Management, DSP Blackrock and Sundaram Asset Management.
At the end of day 1, just 1.2 per cent of the issue was subscribed with total bids for 1,16,935 equity shares against the total issue size of 9.5 million equity shares. While institutional investors and HNIs & corporates stayed away on the first day, retail investors bid only for 2 per cent of the shares reserved for them. Only a small quantum fo shares reserved for employees saw any significant application (55 per cent).
PNC Infratech had filed draft red herring prospectus with SEBI in September 2014. The public issue, which will raise up to Rs 486 crore, will also provide a partial exit to Jacob Ballas.
Mid-market PE investor Jacob Ballas is selling a little over one-fifth of its holding.
Of the fresh issue proceeds, 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.
ICICI Securities and IDFC Securities are the bankers.
In 2009, PNC Infratech planned to raise Rs 175 crore through IPO but later withdrew its plan due to poor market conditions.