Published: Fri, May 19, 2017
Business | By Max Garcia

PSP Projects IPO subscribed 27% on Day 2

PSP Projects IPO subscribed 27% on Day 2

Ahmedabad-based PSP Projects Limited, a multidisciplinary construction company in India has launched its initial public offering and is open for subscription from May 17, 2017, to May 19, 2017.

The IPO received bids for 14,79,940 shares against the total issue size of 55,44,000 shares, data available with the NSE showed.

PSP Projects has priced its IPO in a band of Rs 205-210 with an aim to raise Rs 211.68 crore.

The portion reserved for qualified institutional buyers (QIBs) was subscribed 4 per cent and non institutional investors 16 per cent. The issue closes on 19 May. It plans to sell as many as 10.08 million shares, which at the upper end of the price band will raise Rs211.6 crore, including a primary fund-raise of Rs151 crore.

The IPO committee of PSP Projects at a meeting held on 16 May 2017 allocated 45.36 lakh shares to nine anchor investors at Rs 210 per share aggregating Rs 95.25 crore. The anchor book allocation of the company saw subscription from investors such as Reliance Mutual Fund, SBI Mutual Fund, Axis Mutual Fund, Sundaram Mutual Fund and Birla Sun Life Insurance.

The issue is being managed by Karvy Investor Services and Motilal Oswal Investment Advisors.

PSP Projects reported net profit of Rs 21.48 crore on net sales of Rs 239.10 crore in nine months ended 31 December 2016. Services offered are across the construction value chain, ranging from planning and design to construction and post-construction activities to private and public sector enterprises. Historically, PSP has focused on projects in the Gujarat region.

PSP Projects offers construction and allied services across industrial, institutional, government and residential projects.

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