Texmo Pipes & Products IPO subscribed 38 per cent on first day

NEW DELHI: Pipe manufacturer Texmo Pipes & Products's Rs 45-crore initial public offer got subscribed 38 per cent on the first day of its issue on Tuesday, with most of the bids coming from non-institutional and retail investors.

The company received bids for 18.86 lakh shares against 50 lakh equities on the offer for public, the data with the National Stock Exchange (NSE) shows.

The pipe manufacturer has entered into the capital market with a offer of 50 lakh equity shares of Rs 10 each for cash in a price band of Rs 85 to Rs 90. At the upper end of the price range, the company expects to raise up to Rs 45 crore.

The proceeds of the issue are intended to be deployed for expansion of product range, setting up of manufacturing facilities and meeting long term working capital requirements.

On the first day of issue, the IPO got subscribed 92 per cent in the non-institutional investors category, while in the retail segment it was subscribed 41 per cent, as per NSE data.

In the qualified institutional buyers category, the issue got subscribed 20 per cent on day one. The IPO closes on February 19.

The pipes manufactured by the company are used in various fields including irrigation, agriculture and potable water supply schemes etc.