The initial pubic issue of Prakash Steelage was subscribed 4.22 times by 17:00 IST on the last day of bidding for the issue today, 10 August 2010. The IPO received bids for 2.63 crore shares, compared with 62.5 lakh shares on offer.
The qualified institutional buyers (QIBs) category was subscribed 1.27 times when the bidding for the issue by QIBs got over on Monday, 9 August 2010. The non-institutional investors category, made up of high-net worth individuals and corporates, was subscribed 4.26 times by Monday, 9 August 2010. Retail investors category was subscribed 1.45 times.
The price band for the issue was set at Rs 100-110 per equity share. Bidding for the issue by retail investors and non-institutional bidders ends today, 10 August 2010.
Prakash Steelage which manufactures stainless steel pipes and tubes, has launched the IPO to fund expansion plans.
The proceeds will be used to part finance expansion plan at Umbergaon plant in Gujarat, and also to meet the additional working capital requirement.
Net profit jumped 142% to Rs 17.81 crore on 50% growth in net revenue to Rs 438.58 crore in the year ended March 2010 over the year ended March 2009. The revenue growth was driven mainly by trading operations.