Nissan Copper to raise Rs 25 crore from IPO
Copper products manufacturer Nissan Copper is tapping the capital market to raise Rs 25 crore through an initial public offer to part finance its expansion projects.
By PTI |
NEW DELHI: Copper products manufacturer Nissan Copper is tapping the capital market to raise Rs 25 crore through an initial public offer to part finance its expansion projects.
The issue, with a price band of Rs 33 to Rs 39 per equity share, would open on December 4 and close on December 8.
Commenting on the purpose of the issue, Nissan Copper managing director Ratan Mardia said, "The proceeds of the IPO would be used in funding our future expansion which includes capacity expansion at our Umbergaon plant."
The company has plans to enhance the production capacity of its copper pipes to 2400 tonnes per annum (tpa) from the current 1,200 tpa, of its copper ingots and billet bars to 10800 tpa from 7,200 tpa and of copper sections, tubes to 5,400 tpa from 2,400 tpa, he said.
"The total cost of the project is Rs 35 crore of which SBI has sanctioned a term loan of Rs 10 crore while the remaining Rs 25 crore would be raised through the IPO," he said.
The issue would be made through 100 per cent book building process, where at least 50 per cent would be allocated on a proportionate basis to Qualified Institutional Buyers (QIBs), he said.
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