PNC Infratech IPO subscribed 1% on day one

The initial public offer (IPO) of infrastructure development and management company PNC Infratech flopped on the first day of public offer as it was subscribed only 1.29 per cent on Friday.

The Rs 478-crore IPO received bids for 1,16,935 shares against the total issue size of 90,60,197, data available with NSE (National Stock Exchange) till 5 pm showed.

The public offer did not get any bid from qualified institutional buyers (QIBs) while non-institutional investors received a subscription of 0.04 per cent.

Retail investor category saw 0.02 times subscription.

The price band has been fixed at Rs 355-Rs 378.

The issue will close on May 12.

Post-issue, the shareholding of the promoter and promoter group in the company will fall to 56.1 per cent from the current holding of 72.3 per cent.

The company plans to use the net proceeds to fund its working capital requirements (Rs 150 crore), invest in its subsidiary (Rs 65 crore), invest in capital equipment (Rs 85 crore), repay certain debts (Rs 35 crore) and for general corporate purposes.

The company has executed 42 major infrastructure projects on an EPC basis. For the year ended March 2015, the company's order book was at Rs 7,849.7 crore against Rs 6,085.78 crore last year.

In terms of financials, revenues have grown at 11 per cent annually during 2009-10 and 2013-14 to Rs 1,145.6 crore. The operating margin has remained at the level of 11-12 per cent. It has also received a credit rating of CARE A for long term and CARE A1 for short-term.

ICICI Securities and IDFC are the book running lead managers to the issue.