The initial public offering of construction firm PSP Projects was subscribed 11 per cent on the first day of bidding today.

The offer received bids for 6,12,150 shares against the total issue size of 55,44,000 shares, data available with the NSE showed.

The company’s initial share-sale offer will close on May 19. It has fixed the price band at Rs 205-210 per equity share.

The public issue comprises fresh issue of up to 72 lakh equity shares and offer for sale of up to 28.80 lakh shares by existing shareholders. It is expected to raise Rs 211 crore.

PSP Projects has worked for the state government, industrial and institutional clients, and across residential and non-residential segments. It has so far executed over 80 projects including construction of Gujarat Cancer Society Medical College, construction and interior works of Swarnim Sankul 1 and 2 (CM’s office and office of ministers of Gujarat) at Gandhinagar, ZydusBSE -0.38 % Hospital at Ahmedabad, and various construction works in relation to the Sabarmati Riverfront Development project in Ahmedabad

PSP Projects’s client list includes Cadila Healthcare Ltd, Care Institute of Medical Sciences Ltd (CIMS), Claris Injectables Ltd, Emcure Pharmaceuticals Ltd, Gelco Electronics Pvt Ltd, government of Gujarat, Intas Pharmaceutical Ltd, Amul Dairy, Nirma Ltd and Torrent Pharmaceuticals Ltd.

PSP Projects Financials

In the five years to FY16, the company’s standalone revenue grew 26.8% annually to `467 crore. Net profit grew 31.6% to `24.9 crore. In FY16, its debt-to-equity ratio was 0.7 and return on equity was 44%.

PSP Projects raises Rs 95 crore ahead of its IPO on Tuesday by allotting 45.36 lakh equity shares at Rs 210 per share to nine anchor investors, including Reliance Mutual Fund, SBI Mutual Fund, Axis Mutual Fund, Sundaram Mutual Fund, Birla SunLife Insurance and TATA AIA, among others.

The IPO is valued at 25.1 times PE on FY17E basis (post dilution), which is not cheap, but appears to be comfortable,

  • Board Of Directors
    Prahaladbhai Shivrambhai Patel, aged 53 years, is the Chairman and Managing Director and CEO
  • Shilpaben Patel, aged 50 years, is the whole-time Director
  • Pooja Patel, aged 24 years, is the executive Director
  • Chirag Shah, aged 50 years, is the independent Director
  • Sandeep Shah, aged 55 years, is the independent Director
  • Vasishtha Patel, aged 53 years, is the independent Director

PSP Projects IPO Issue Detail:

Issue Open: The issue opens on May 17, 2017 and closes on May 19, 2017
Issue Type: Book Built Issue IPO
Price Band: Rs. 205 – Rs. 210 Per Equity Share
Lot Size: 70 equity shares and in multiple thereafter
Issue Size: 10,080,000 Equity of Rs 10 aggregating up to Rs 211.68 Cr
Mode of Payment: ASBA is mandatory (cheques will not be accepted)
Listing: BSE, NSE