A cement company’s ?36-billion ($413 million) initial public offering (IPO) was fully subscribed on the third day of bidding, as investors backed the firm’s long-term growth prospects supported by government initiatives in infrastructure and housing. Cement producers in India, the world’s second-largest supplier of the material, are betting on rising government infrastructure spending and a strong housing sector to drive demand, which has spurred increased deal activity in recent years. Cement demand is expected to grow 6%-7% annually through 2030, according to a ratings agency, with analysts also forecasting price recovery from last fiscal year’s multi-year lows. Total bids were 1.31 times the shares on offer, exchange data showed as of 1:00 p.m. local time. Both institutional and retail investors matched the portions allotted to them. The company, which targets a valuation of around $2.3 billion, is scheduled to list on major Indian stock exchanges in mid-August. Analysts have noted that the firm has a competitive edge due to its access to related industries, allowing it to source key raw materials and power at favorable terms.

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