Follow on public offer was subscribed meager 0.13 times on day one.
Rishabhdev Technocables' follow-on public offer aggregating around Rs 30 crore saw a poor response on day one. The issue got bids for just 9.11 lakh shares (at 16:00 IST). The issue was subscribed just 0.13% of the total issue size. The issue closes on 9 June 2009. This is the first public offer to hit the market in nearly three months and has a firm underwriting arrangement.
The company is issuing 90 lakh equity shares of Rs 10 each for cash at a price to be decided through 100% book building process. The net offer to the public will comprise of 68.54 lakh equity shares aggregating around Rs 23 crore. The promoters are subscribing to 21.45 lakh equity shares at the issue price.
The price band is fixed between Rs 29 and Rs 33 a share.
Rishabhdev Technocables is specialized, controlled and power cables manufacturer promoted by Sunil Golchha. The funds are being raised to finance the setting up of a brand new, low voltage power cables plant at Silvassa. Machinery for this plant has been ordered and the plant is expected to go on stream by the end of the year.
Rishabhdev Technocables currently has two units in Daman, one for specialized cables and the other for controlled cables and smaller size power cables. Additional facilities are being added to both units to make them more cost efficient. The Company has a blue-chip clientele which includes Tata Power, Grasim, Reliance, Essar, Siemens, Sanghi, Alok Industries and Welspun, among others.
Its shares are currently listed on the Pune and Jaipur stock exchanges and the company now proposes to list on Bombay Stock Exchange.
Source: CapitalMarket.com
Thursday, June 4, 2009
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