India: IPO-bound Capacit’e Infraprojects raises $18.7m from anchor investors

Photo: Mint

Capacit’e Infraprojects Ltd, a Mumbai-based construction company, on Tuesday said it has raised Rs120 crore by selling shares to institutional investors as part of the so-called anchor book allocation, a day ahead of the launch of its initial public offering (IPO).

The construction company’s IPO opens on 13 September. The company has set a price band of Rs245-250 per share for the share sale.

Institutional investors bought 4.8 million shares of the company at the upper end of the price band.

The anchor book is that portion of an IPO that bankers can allot to institutional investors on a discretionary basis. Anchor book subscription opens a day before an IPO launch and acts as an indicator of institutional investor interest.

Institutional investors who participated in the anchor book allocation included DSP Blackrock India T.I.G.E.R Fund, Goldman Sachs India Ltd, HSBC Global Investment Funds, ICICI Prudential Growth Fund, Reliance Mid and Small Cap Fund, SBI Infrastructure Fund and Kotak Midcap Fund.

The Rs400 crore IPO will see the company dilute 24% stake. The share sale will close on 15 September.

The company is backed by Siddharth Parekh-led private equity firm Paragon Partners.

The company plans to use the funds for working capital requirements, purchasing capital assets and general corporate purposes.

Capacit’e Infraprojects undertakes construction of residential, commercial and institutional buildings, primarily in the Mumbai metropolitan region, the National Capital Region (NCR) and Bengaluru.

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