Karda Constructions Limited which had tapped the capital markets with its fresh issue of 43 lac shares in a price band of Rs 175-180. The issue had opened on Friday 16th of March and closed on Wednesday the 21st of March. There was no anchor allocation and the issue were divided into 10% for QIB’s, 40% for HNI’s and 50% for retail.

The issue was subscribed 1.55 times by QIB’s, 3.43 times by HNI’s and 2.01 times by retail. The issue was valued at a price earnings multiple based on March 2017 numbers of a stiff 21.79-22.42 based on earnings of Rs 8.03. Considering that Nasik is a tier-2 city, valuations looked expensive. The issue did receive reasonable response considering the flood of IPO’s in the market.

Details of the subscription are given below: –