Deepak Builders secures ₹78.01 crore from anchor book

21 Oct 2024 , 09:57 AM

Deepak Builders & Engineers India has successfully raised ₹78.01 crore from five institutional investors through its anchor book on October 18. The company’s public issue is open subscription from October 21-23.

The firm aims to raise ₹260.04 crore through its initial public offering (IPO) at the upper end of the price band, which is set between ₹192 and ₹203 per share. The IPO comprises a fresh issue of 1.07 crore equity shares valued at ₹217.21 crore, along with an offer-for-sale of 2.11 million shares worth ₹42.83 crore.

Promoter Deepak Kumar Singal and his wife, Sunita Singal, will be the selling shareholders in the offer-for-sale.

In the exchange filings on Friday, the Punjab-based construction company announced the allocation of 3,842,939 equity shares to anchor investors at ₹203 per share. Notably, Neomile Growth Fund emerged as the largest investor, acquiring 1.477 million shares for ₹30 crore, followed by Citadel Capital Fund, which purchased 985,000 shares for ₹20 crore. Other investors, including Saint Capital Fund, Zeal Global Opportunities Fund, and Elite Capital Fund, collectively invested ₹28 crore for 1.38 million shares.

Deepak Builders plans to use the net proceeds from the fresh issue towards the fresh issue proceeds for debt repayment. Around ₹111.96 crore will be allocated for working capital needs, while the remaining funds from the IPO will be directed towards general corporate purposes.