Nelcast IPO subscribed over 7 times
Initial public offer of Nelcast today got oversubscribed seven times on the last day of its Rs 95.26 crore offer.
By PTI |
MUMBAI: Initial public offer of Nelcast today got oversubscribed seven times on the last day of its Rs 95.26 crore offer.
The IPO received 3.20 crore bids for its offer of 43.50 lakh equity shares, latest data available on the stock exchanges shows.
The company's offer received decent response from Qualified Institutional Buyers, including Foreign Institutional Investors, mutual funds among others, with the portion reserved for them getting subscribed over 11 times, the data shows.
While, the retail investors portion received over 4 times demand for the part reserved for them in the total offer.
Nelcast, a castings and component manufacturing company, which entered the capital market with a 43.50 lakh share initial public offering, IPO.
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The issue made through 100 per cent book building process, with the price band between Rs 195 and Rs 219 for the shares of face value Rs 10 each.The issue constitutes 25 per cent of the post-issue paid-up capital. The company plans to raise up to Rs 95.27 crore by way of fresh equity.
Nelcast caters mainly to commercial vehicle and tractor industries. It plans to use the issue proceeds for expansion and modernisation of its units at Gudur in Andhra Pradesh and Ponneri in Tamil Nadu, to reach a production capacity of 1,50,000 MT per annum by 2008-09.
Its customer base includes Tata Motors, Ashok Leyland, Eicher Motors, Tata Cummins, Mahindra and Mahindra, TAFE, International Tractors and New Holland India.
Karvy Investor Services and UTI Securities are the book running lead managers to the issue.
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