Despite weakening sentiment across the equity markets, investors continued to show strong faith in Deepak Builders & Engineers India as its initial share sale received bids for 37.24 crore equity shares, 41.54 times higher against the offer size of 89.67 lakh shares on October 23, the last day of subscription. The benchmark Nifty shed seven percent from its record high of September 27.

The engineering and construction company targets to mop up Rs 260.04 crore through its initial public offering which is a combination of fresh issue of 1.07 crore shares worth Rs 217.21 crore, and an offer-for-sale of 21.1 lakh shares worth Rs 42.83 crore.

Deepak Kumar Singal, and his wife Sunita Singal are the selling shareholders in the offer-for-sale. The price band for the issue, which was opened on October 21, is Rs 192-203 per share.

Non-institutional investors (high networth individuals) took the lead amongst them, buying 82.47 times the allotted quota, followed by retail investors who subscribed 39.79 times their reserved portion. Qualified institutional buyers also showed good interest in the issue, picking up 13.91 times their portion set aside for them.

The Ludhiana-based company, which had mobilised Rs 78 crore from anchor investors on October 18, intends to spend Rs 142 crore out of net fresh issue proceeds for repaying its debt, and working capital requirements. And the remaining amount will be used for general corporate purposes.

Deepak Builders & Engineers' IPO shares maintained healthy premium of 30 percent in the grey market over the upper price band ahead of debut next week, tracking strong subscription numbers, market observers said. The grey market is an unofficial market wherein IPO shares can be bought and sold till the listing on the bourses.

The company will finalise the basis of allotment of IPO shares by October 24, while the equity shares will be credited to demat accounts of successful investors by October 25.

Trading in its equity shares will commence on the BSE and NSE effective October 28.