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Sadbhav Infra IPO subscribed just 20% at end of day 2

Sadbhav Infrastructure Projects Ltd has received tepid response from the investors with its initial public offer (IPO) subscribed just around 20 per cent at the end of the second day of the issue.

The public float received total bids for 5.78 million equity shares on the eve of the penultimate day of the issue against the total size of 28.58 million equity shares.

As per the data available with the stock exchanges, while qualified institutional buyers’ (QIBs) portion subscribed to just 7 per cent of the portion reserved for them, HNIs & corporates and retail investors bid for 45 per cent and 33 per cent of their portions, respectively, as of end of day 2.

The issue had a real slow start to begin with and saw only 12 per cent of the issue covered on the first day on August 31.

It had previously raised Rs 210 crore (around $31 million) from a bunch of domestic and foreign investors who have come as anchor investors ahead of its proposed initial public offer (IPO). The issue will close on September 2.

Sadbhav Infrastructure, an infrastructure sector player primarily involved in the development of highways and road projects, was initially looking to raise Rs 600 crore through fresh issue of shares in the IPO.

However, the company withdrew its documents in May and refiled them with SEBI for the public issue. It had cut the size of fresh issue of shares as well as the quantum of shares offered for sale by its existing private equity backers—Xander and Norwest Venture Partners.

The firm is now looking to raise Rs 425 crore through fresh issue of shares in its IPO besides the offer for sale.

Kotak Mahindra Capital, ICICI Securities, Inga Capital, Edelweiss and Macquarie are the book running lead managers for the public issue.

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