India's L&T Finance Holdings priced its initial public offering (IPO) near low end of the price band on Saturday, raising $252 million in a market that has seen fewer new issues so far this year due to weak markets.
The company, a unit of Indian engineering conglomerate Larsen & Toubro , has fixed the issue price at 52 rupees ($1.2) a share, while the price range for the public offering was at 51-59 rupees a share.
L&T Finance's IPO was covered 5.2 times, and exchange data showed most bids came near the top of the price range. The issue closed on Friday.
The company was offering 214.51 million shares to raise funds for strengthening its capital base, for lending and for repayment of debt.
Before the launch of the public offering, L&T Finance had raised around $36 million from three cornerstone investors including DSP BlackRock, Malaysia's Khazanah and US private-equity fund Capital International.
It had earlier raised $75 million in a pre-IPO share placement to Capital International.
Indian companies have raised $7.1 billion in equity in the first half of 2011, down 42% from the year-ago period, Thomson Reuters data showed.
India's main stock index in Mumbai is down more than 11% this year, making it one of the world's worst-performing markets.
Several companies have delayed share sale plans, including Oil and Natural Gas Corp , which has been deferring a $2.8 billion offering, and Steel Authority of India , which has delayed a $1.8 billion issue.
HSBC , Citigroup , JM Financial , Barclays Capital , Credit Suisse and Equirus Capital were the arrangers for the L&T Finance offer.