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Highway Infrastructure Limited made such a debut in the stock market on Tuesday that the pockets of investors were completely filled. The company’s shares on the Bombay Stock Exchange (BSE) opened at Rs 177, 67 percent above its issue price. At the same time, its listing on the National Stock Exchange (NSE) took place at Rs 115 with 64.29% premium. Even after the listing, the process of boom continued and it hit a 5 percent upper circuit in the secondary market. After this, the price of shares increased to Rs 120.75.
IPO gets a record breaking demand
The tremendous response received by the IPO of highway infrastructure shows that this listing was not common. The company opened its IPO on 5 August, which remained open till 7 August. In these three days, this issue got more than 300 times subscription, which is really a big thing. The special thing is that the segment with big investors, ie qualified institutional buyers (QIB) subscribed to its share of more than 420 times. At the same time, Non-Intelligence Investors (NII) bid more than 447 times. The common retail investors also did not back down and subscribed more than 155 times. All these things show that the trust of investors is very strong about the company’s business and hopes of growth.
130 crores was an issue
Through this IPO, the company had targeted to raise Rs 130 crore. Out of this, new equity shares worth Rs 97.5 crore were issued, while an offer for sale (O.S) of Rs 32.5 crore was included. The company has made it clear that the amount raised will be used mainly for meeting the needs of working capital and for general corporate purposes.
Strong hold in infrastructure sector
Highway Infrastructure Limited is a tollway operator, which works in the field of road and infrastructure development. Infrastructure sector is an important engine of India’s economic growth and demand in this sector is continuously increasing. Market experts believe that in view of the company’s current position and the possibilities of the sector, its shares can also give good returns in the long term.
Disclaimer: This article is only for information and should not be considered as an investment advice in any way. TV9 India suggests its readers and spectators to consult their financial advisors before taking any decision related to money.