Vaswani Industries IPO over subscribed 3.87 times on final day

MUMBAI: The initial public offer of sponge iron manufacturer Vaswani Industries got over subscribed by 3.87 times on the final day of the issue on Tuesday.

Vaswani Industries has received total bids for 3.87 crore equity shares against 1 crore scrips on offer, according to information available with the National Stock Exchange till 1700 hrs.

The major support has been witnessed from non-institutional investors, their reserved portion has been subscribed more than seven times till May 2.

The price band of the issue, which opened on April 29, is at Rs 45-49 a share. At the upper band, the firm is expected to mop up Rs 49 crore, while at the lower end it will garner Rs 45 crore through the offer.

Vaswani is engaged in integrated business of manufacturing sponge iron, steel billets and ingots and power generation. The proceeds of the IPO would be utilised for pre-payment of term loan coupled with working capital requirements among others.

Ashika Capital Ltd is the book running lead manager to the issue.