Receives bids for 38.26 lakh shares
The initial public offer (IPO) of HPL Electric and Power received bids for 38.26 lakh shares, as per the data on the National Stock Exchange of India (NSE) website as at 16:00 IST. The IPO was subscribed 0.26 times on the second day of bidding today, 23 September 2016.
HPL Electric and Power seeks to raise Rs 361 crore through an IPO. The issue opened for bidding yesterday, 22 September 2016 and closes on 26 September 2016. The price band for the IPO has been fixed at Rs 175 to Rs 202 per share.
Ahead of the IPO, HPL Electric and Power raised Rs 108.29 crore by selling 53.61 lakh shares to a total of 13 anchor investors. The shares were allotted to the anchor investors at Rs 202 per share, the top end of the Rs 175 to Rs 202 per share price band for the IPO.
The company manufactures electrical appliances, switch-gears, electronic energy meters and electrical protection equipment. The company had the largest market share with 20% in the market for electricity energy meters in India. The company currently manufactures and sells its products under the umbrella brand 'HPL', which has been registered in India since 1975.
Out of Rs 361 crore proposed to be raised through the IPO, the company will spend Rs 130 crore towards repayment/ prepayment of certain indebtedness; Rs 180 crore towards funding working capital requirements and remaining for general corporate purpose.
On a consolidated basis, HPL Electric and Power reported net profit of Rs 36.62 crore on net sales of Rs 1116.38 crore in the year ended March 2016.
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