PNC Infratech IPO oversubscribed 1.56 times on last day

The initial public offer (IPO) of an infrastructure development and management company PNC Infratech oversubscribed 1.56 times on the last day of the offer on May 12.

The Rs 488-crore IPO received bids for 1,41,52,495 shares against the total issue size of 90,60,197, data available with National Stock Exchange (NSE) showed.

The portion reserved for qualified institutional buyers (QIBs) was subscribed 4.51 times while non-institutional investors received a subscription of 0.62 times. Retail investor category saw 0.28 times subscription.

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

The company plans to use the net proceeds to fund its working capital requirements (Rs 150 crore), invest in its subsidiary (Rs65 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.