It's not exactly a great time to launch an IPO unless you are a Reliance. The public issue of private equity-backed IRB Infrastructure Developers, an infrastructure and construction company, is closing today, but has only managed to attract bids for 44.9 million shares againts the offering of 51.05 million shares. That's just about 0.88 times the issue. The company is invloved in the construction of the roads and highways, and has some 12 BOT projects in this sector.

The institutional buyers have picked their reserved part, which got oversubscribed by some 1.37 times. But the HNI and retail category are grossly undersubscribed, according to the numbers posted on National Stock Exchange website currently.

The issue has been priced at Rs 185 to Rs 220 per equity share of Rs 10 each. The issue was open from January 31, and will close today. Deutsche Equities India Private Ltd is the sole global coordinator and BRLM for the issue and Kotak Mahindra Capital Co. Ltd is the Co-BRLM for the issue.

It plans to use the proceeds for prepayment and repayment of existing loans of the company and the subsidiaries Aryan Toll Road Pvt. Ltd, Modern Road Makers Pvt. Ltd, Thane Ghodbunder Toll Road Pvt. Ltd, NKT Road & Toll Pvt. Ltd and Mhaiskar Infrastructure Pvt. Ltd. It also has land reserves of about 925 acres in Mauje Taje and Mauje Pimploli Taluka in Pune district.

The existing investors in IRB include Deutsche Bank Hong Kong Branch, Jade Dragon (Mauritius) Ltd (a subsidiary of Goldman Sachs) and CPI Ballpark Investments Limited (a subsidiary of Merrill Lynch) hold 3.85 per cent stake each, and Somerset Emerging Opportunities Fund hold 0.54 per cent stake in the equity share capital of the company.

Source : vccircle.com