Yet another IPO; this time from realty space

After a series of IPOs from various sectors, this time a new sector is coming up with an IPO. Dilip Buildcon, which is operational in realty space is all gearing up for an IPO. Company has fixed a price band of Rs 214 to 219 per equity share of face value of Rs 10 each. The floor price is 21.40 times the face value and cap price is 21.90 times of face value. Bids can be made for a minimum of 65 equity shares and in multiples of 65 equity shares thereafter.

The company plans to raise upto Rs 430 crores, and will include an offer for sale of 11.36 million shares. Banyan Tree currently holds about 9.75 per cent in the company, and will sell 6 per cent stake through this IPO. It is the second attempt of the company for an IPO. Last year, the company had proposed to raise about 650 crores but had backed off then.Company’s peers like Sadbhav Infrastructure Projects, Ashoka Buildcon and IRB Infrastructure Developers are already listed.

Company builds roads, dams, canals, and residential projects and had filled its draft red herring prospectus (DHRP) with SEBI in February 2016.The government is planning to award 25000 km road projects in 2016-17. Looking at such a development, investment sentiment in the sector looks quite positive and it could be interesting to see the outcome of the issue.

The bid issues will open on August 1 2016, and will close on August 3. Company has appointed Axis Capital, IIFL, JM Financial and PNB Investment Services as the lead book runners for the issue.