ARSS Infra IPO subscribed 3.5 times on day 2

Qualified institutional investors (QIBs) looked quite optimistic on the Orissa based infrastructure company, ARSS Infrastructure Projects. QIBs' reserved portion in the initial public offering (IPO) of this company got oversubscribed 5.3 times while the issue was subscribed nearly 3.5 times overall on second day, February 9.
Non-institutional and retail investors’ portion was subscribed 1.5 times and 0.6 times, respectively.
The price band of Rs 103-crore issue is at Rs 410-450 per share and the issue will close on February 11, 2010.
he company is engaged in the business of construction activities in India. It undertakes construction of railway infrastructure, roads, highways, bridges and irrigation projects.
The issue proceeds will be used for investment in joint ventures (at a cost of Rs 5 crore) and funding long term working capital requirement (cost of Rs 86 crore).
The company's order book position was at Rs 28.77 billion as on January 10, 2010 and it had 145 projects in hand as on that date.
The book running lead managers to the issue are IDBI Capital Market Services Ltd and SBI Capital Markets Ltd. Bigshare Services Private Ltd is the registrar.