PSP Projects listing and price movements have been unimpressive on the first day.
Grey Market :
After unexpected oversubscription in QIB portion and RII portion, on 27th May 2017,,GMP is being quoted at Rs. 15-16 but actual trades are very very few.
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As on Date & Time ……………………. QIB ………. NII …… RII ………. Total
Shares Offered …………………3,024,000 1,512,000 1,008,000 5,544,000
Day 1 – May 17, 2017 05:00 pm 0.0000 …. 0.1500 …. 0.3800 ….. 0.1100
Day 2 – May 18, 2017 05:00 pm 0.0400 … 0.1600 …. 1.1044 ….. 0.2708
Day 3 – May 19, 2017 05:00 pm 5.3724 … 10.3844 …. 6.3279 ….. 8.5512
Anchor Book :PSP Projects’ anchor book allocation saw subscription from investors such as Reliance Mutual Fund, SBI Mutual Fund, Axis Mutual Fund, Sundaram Mutual Fund and Birla Sun Life Insurance.
Opens on : May 17, 2017
Closes on :May 19, 2017
Issue Type: Book Built Issue IPO
Issue Size: 10,080,000 Equity Shares of Rs 10 aggregating up to Rs 211.68 Cr
Face Value: Rs 10 Per Equity Share
Price Band : Rs 205 – Rs 210 Per Equity Share
Minimum Order Quantity: 70 Shares
Listing proposed at: BSE, NSE
The total IPO constitutes about 28% of the post-offer equity, according to the prospectus.
Object of the IPO :The company will use Rs 63 crore toward working capital requirements, Rs 51 crore to meet capital expenditure requirements and an undisclosed amount for general corporate purposes.
About the Company
PSP Projects offers a range of construction and allied services across industrial, institutional, government, government residential and residential projects in India.
It was incorporated eight years ago by chairman, managing director and CEO Prahaladbhai Shivrambhai Patel, who has been in the construction business for over 30 years.
The company provides services across the value chain, ranging from planning and design to construction and post-construction activities, to private and public-sector enterprises. Historically, it has focused on the Gujarat region. PSP is looking to diversify into other regions and is taking up projects across India.
The company claims it completed the construction of the GCS Medical College, Hospital and Research Centre (managed by the Gujarat Cancer Society) in June 2012 . It has executed a number of projects including the construction of the Zydus Hospital at Ahmedabad and various works related to the Sabarmati Riverfront Development project in Ahmedabad.
Since its incorporation in August 2008, PSP Projects has executed 71 projects as of 30 November 2016.
For full year 2015-16, the company reported a net profit of Rs 22.63 crore on revenue of Rs 475.97 crore.
Lead Managers: Karvy Investment Banking and Motilal Oswal Investment Banking are managing the issue.
Grey Market Trend:
Since the IPO size isexpected to be less than Rs. 250 crores, the scrip is expected to get listed in T – segment and hence at present , we cannot comment as to what will be the Grey Market fancy for this IPO.