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IPO News
Feb 25 2008 12:00AM
IRB Infrastructure Developers settles with 2% premium
IRB Infrastructure Developers settled at Rs 189.05 on BSE, a premium of 2.18% over the IPO price of Rs 185 per share.

The stock debuted at Rs 170, a discount of 7.83% over the IPO price.

On BSE, 1.60 crore shares were traded in the scrip. The stock touched a high of Rs 209 and a low of Rs 167.30.

The current price of Rs 189.05, discounts the year ended March 2007 consolidated EPS of Rs 0.68 with a PE multiple of 278.01.

The Mumbai-based firm had set a IPO band of Rs 185 to 220 a share. The IPO of IRB Infrastructure Developers, which closed on Tuesday, 5 February 2008, was subscribed 4.30 times. The IPO received bids for 21.94 crore shares as against 5.10 crore shares on offer.

The qualified institutional buyers (QIBs) portion was subscribed 6.42 times, the non institutional investors portion 1.55 times and the retail investors portion 0.98 times. The portion reserved for employee was subscribed 0.94 times.

The company, which primarily works on road projects, plans to focus on road projects in western India and is also diversifying into real estate. IRB will use the sale proceeds for repaying Rs 720 crore of existing loans and invest in a subsidiary which holds rights to the 65-kilometres Bharuch-Surat toll road project.

It has outlined plans to develop a 1,400-acre integrated township near Pune in western Maharashtra.

On a consolidated basis, IRB Infrastructure Developers reported a net profit of Rs 22.73 crore on sales of Rs 305.72 crore in the year ended March 2007.

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