MBL Infrastructures IPO subscribed 1.97 times

Receives bids for 95.77 lakh shares as against 48.6 lakh shares on offer.
Construction firm MBL Infrastructures' initial public offering (IPO) was subscribed 1.97 times, NSE data showed. The IPO received bids for 95.77 lakh shares as against 48.6 lakh shares on offer. The price band for the IPO has been fixed at Rs 165 to Rs 180 per share.
The qualified institutional buyers category was subscribed 3.34 times, non-institutional investors category was subscribed 2.64 times, retail individual investors category was subscribed 0.39 times and employee reservation category was subscribed 0.13 times.
Out of the total issue of 57 lakh shares, 8.4 lakh shares have been kept aside for anchor investors. Out of the total 8.4 lakh shares available for anchor investors, 4.2 lakh shares were allotted to Reliance Capital Trustee Company, Reliance Infrastructure Fund and 4.2 lakh shares were allotted to The GMO Emerging Illiquid Mauritius Fund at Rs 182 per share.
Based on the price band of Rs 165-Rs 180 per share, the company will raise between Rs 94 - Rs 103 crore.
The company intends to use the issue proceeds to meet capital expenditure on procurement of construction equipments, funding working capital requirements and meeting general corporate requirements.
Rating agency ICRA has assigned an IPO grade of 2 out of 5 to the MBL Infrastructures IPO.
MBL Infrastructures is engaged in the business of construction and maintenance of roads and highways, industrial infrastructure projects and other civil engineering projects for various government bodies and other clients. It is also engaged in steel trading and waste management at major steel plants.
As per company's consolidated result, the net profit rose 76.2% to Rs 27.4 crore on 74.72% rise in sales to Rs 513.64 crore in the year ended March 2009 over the year ended March 2008.