Sadbhav Infra opens IPO; raises $31M from anchors

Sadbhav Infrastructure Projects Ltd has 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) which opened for subscription on August 31.

The company has allotted 20.4 million equity shares to seven anchor investors at a share price of Rs 103, the upper end of the price for the IPO.

The anchor investors included Nomura India Investment Fund Mother Fund, Morgan Stanley Mauritius Company, HDFC Trustee Company, Tata AIG Life Insurance Co, Amansa Holdings and SBI Mutual Fund.

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.

Meanwhile, the public issue opened for subscription and was subscribed 12 per cent at the end of day 1, as per the data available with the stock exchanges. Institutional investors are yet to latch on to the issue but the IPO found takers among corporates and HNIs besides retail investors.

The issue closes on September 2.

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

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