The initial public offer (IPO) of infrastructure firm Salasar Techno Engineering (STEL) was over-subscribed an overwhelming 272.93 times. Monday was the last day for bids. This translated into the IPO receiving bids for 90,63,94,500 shares against the total issue size of 33,21,000 shares.
The IPO had opened for bidding on 12 July. The issue price of Rs. 108 per share (totalling to Rs. 35.86 crore) was considered reasonable by most analysts. Management plans to use the money to meet working capital requirements. Over FY13- FY17 the revenues of STEL grew at a CAGR of 16%, and growth in net profit was 43.2%.
Salasar Techno Engineering is a leading provider of customized steel fabrication and infrastructure solutions in India for telecommunication towers, transmission towers, substation structures and solar module mounting structures. Projected growth in this sector is expected to boost revenues in coming quarters.
