Zenith Birla to raise Rs 131 cr in FPO
Zenith Birla Limited, a Yash Birla Group Company, will hit the capital market on October 16 with its public offer of shares to raise about Rs 131 crore to set up a mechanical tube plant near Khopoli.
By PTI |
NEW DELHI: Zenith Birla Limited, a Yash Birla Group Company, will hit the capital market on October 16 with its public offer of shares to raise about Rs 131 crore to set up a mechanical tube plant near Khopoli.
Zenith Birla, manufacturer of steel pipes and machine tools, will offer 2,38,18,182 shares at a price of Rs 55 per share during October 16-20.
"The company has come out with the follow on public offer to set a mechanical tube plant to basically cater to the needs of automobile manufacturers," Zenith Birla executive director Arun Jain said.
Out of the total public issue, promoters will subscribe to 45,45,455 shares at a price of Rs 62 per share.
As per market regulator Sebi norms, a promoter can subscribe to fresh share issue by taking the six-month average high and lows of ups and downs of the company's stock price or average of last 15-days of trading prices.
After reservations for employees, shareholders, directors, shareholders of group companies, FIIs, NRIs, banks, mutual funds and financial institutions, the net offering to the public is Rs 96,36,365 shares.
Out of Rs 131 crore to be raised, Rs 97 crore will be spent on setting up the plant and the rest will be utilised as working capital.
The mechanical tubes plant will start functioning from November next year. At present, the company has three plants at Khopoli, Aurangabad and Nashik.
Zenith Birla earns half of its annual revenue (total Rs 320 crore) from overseas market, mainly US and Middle East.
There is a shortage of quality tubular products in the market, Jain said.
Zenith Birla, manufacturer of steel pipes and machine tools, will offer 2,38,18,182 shares at a price of Rs 55 per share during October 16-20.
"The company has come out with the follow on public offer to set a mechanical tube plant to basically cater to the needs of automobile manufacturers," Zenith Birla executive director Arun Jain said.
Out of the total public issue, promoters will subscribe to 45,45,455 shares at a price of Rs 62 per share.
As per market regulator Sebi norms, a promoter can subscribe to fresh share issue by taking the six-month average high and lows of ups and downs of the company's stock price or average of last 15-days of trading prices.
After reservations for employees, shareholders, directors, shareholders of group companies, FIIs, NRIs, banks, mutual funds and financial institutions, the net offering to the public is Rs 96,36,365 shares.
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Out of Rs 131 crore to be raised, Rs 97 crore will be spent on setting up the plant and the rest will be utilised as working capital.
The mechanical tubes plant will start functioning from November next year. At present, the company has three plants at Khopoli, Aurangabad and Nashik.
Zenith Birla earns half of its annual revenue (total Rs 320 crore) from overseas market, mainly US and Middle East.
There is a shortage of quality tubular products in the market, Jain said.
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