Ashoka Buildcon raises Rs500 crore through QIP

Highway developer Ashoka Buildcon has raised Rs500 crore through a qualified institutional placement (QIP) by issuing 2.84 crore shares at Rs175.80 each.

The overall allocation to foreign institutional investors was about 40 per cent and domestic insurance companies and mutual funds accounting for the balance.

''We have been able to demonstrate our ability to augment capital backed by sound financial performance across economic cycles. This reinforces the strong faith of high quality international and domestic institutional investors in the business of our company,'' said Satish Parakh, managing director of Ashoka Buildcon.

''We will use the proceeds from this QIP to fund our growth plans that have brightened with the strong projects pipeline combined with improving economic environment in India,'' he added.

IDFC Securities Ltd, ICICI Securities Ltd, Axis Capital Ltd and Macquarie Capital Securities (India) Private Ltd were the book running lead managers to the issue.

The legal advisors were Amarchand & Mangaldas & Suresh A Shroff & Co and Duane, Morris & Selvam LLP. The statutory auditors were M P Chitale & Co, Chartered Accountants.

Ashoka Buildcon, present across nine states, has a portfolio 28 public private partnership projects. It is also active in power transmission and distribution sector with various power projects in Maharashtra, Chattisgarh, Tamil Nadu and Bihar.