Company aims to raise Rs 53 crore.
Ahmedabad-based sodium silicate manufacturer, Aster Silicates Ltd. has proposed to enter the capital market with its initial public offer (IPO) to raise resources to the extent of Rs 53.10 crore. The price band of the IPO is fixed at Rs 112 to Rs 118 and opens and closes for subscription on June 24 and June 28, 2010, respectively.
The issue is being made through a 100 per cent book building process wherein up to 50 per cent will be available for allocation on a proportionate basis to qualified institutional buyers (QIB). Further, not less than 15 per cent of the net issue will be available for to non-institutional bidders and not less than 35 per cent will be available to retail individual bidders.
The company intends to utilise the proceeds of the issue towards expanding its current manufacturing facilities at Jhagadia industrial estate near Bharuch. Currently, the plant has a capacity to manufacture 50 MTPD of sodium silicate, which Aster Silicates proposes to enhance by adding 300 MTPD.
The company also intends to install a special designed triple pass regenerative and recuperative furnace of 100 MT capacity each capable of working on biogas with a facility of having duel fuel arrangement for working on other fuel including natural gas.
Aster Silicate Ltd. currently operates from two units in Gujarat manufacturing sodium silicate which includes food grade sodium silicate, special drilling grade silicate and detergent grade silicate. The company produces sodium silicate both in glass and liquid form. Saffron Capital Advisors Private Limited is the sole Book Running Lead Manager to the issue.
