Should one invest in an IPO of a PSP project?

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Amit Mudgil
New Delhi: The Rs 211 crore IPO of Ahmedabad-based PSP project has been launched in the market on Wednesday. The construction company wants to sell 55.44 lakh shares for a price of Rs 205-210 off. On Tuesday, the company has allocated 45.36 lakh shares to nine anchor investors. These include Reliance Mutual Fund, SBI MF, Axis MF, Sundaram MF and Birla Sun Life. They have been sold at the rate of Rs 210 per share. The company has got a total of Rs 95.25 crore.

PSP Projects has worked for the state government, industrial and institutional clients, and across residential and non-residential segments.

The issue is going to close on Friday. Abhishek Lodhia of Angel Broking said, “The company is now looking at helping in big projects.” Till now there are only big companies in this field. The problem with this is that the management does not have experience with it. Visibility of the order book may be a concern in the company’s growth strategy. He said that premium is being charged more than other companies.

Mrinalini Chetty and Siddharth Khemka of Centrum Broking said, “Even outside Gujarat, the company is bidding for work and can be invested in it. Its track record is good in terms of completion of the project on time and it has long-term relationship with customers.

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