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The qualified institutional bidders portion of 10 per cent in the initial public offer of real estate developer Karda Constructions was fully subscribed on day one.
The Nashik headquartered company had offered 43 lakh equity shares, including fresh issue of 23 lakh shares in the price band of ₹175-180, to raise ₹77.40 crore. The IPO will close next Wednesday.
The shares of the company will list on the SME platform of the BSE and the NSE.
The company intends to utilise the IPO proceeds to deleverage its balance sheet.
Naresh Karda, Chairman and Managing Director, Karda Constructions, said the company has availed certain credit facilities from different banks and term loans from financial institutions.
“As part of our long-term equity value creation plan, we intend to repay certain portions of our debt. Repayment of debt would help us in maintaining a favourable debt-to-equity ratio and enhance our leveraging capacity,” he added.
4-lakh sq ft land reserve
The company has delivered over 17 projects consisting of 1,107 units with total carpet area of over 10.5 lakh sq ft. It is currently developing over 17 lakh sq ft through its 11 ongoing and three planned projects. The company has land reserves of over four lakh sq ft duly registered titles in its name.
As part of exploring new business opportunities, the company has started accepting construction contracts. It was awarded four prestigious government projects in Goa and Nashik and two from the private sector, taking its order book to about ₹60 crore.
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