Prakash Steelage fixes IPO issue price at Rs 110 per share

Steel pipe maker Prakash Steelage today fixed the issue price of its initial public offer (IPO) at Rs 110 per share -- the upper end of the price band.

The Rs 68.75 crore issue, which closed on August 9, had attracted huge participation from non-institutional investors and was subscribed 4.53 times.

The company has entered the capital markets with an issue size of 62.50 lakh shares of Rs 10 each in the price range of Rs 100 to Rs 110 a piece. The issue opened on August 5.

The offering saw strong participation from retail buyers and was subscribed 6.62 times over in the portion reserved for them. The IPO's employee reservation quota too was subscribed fully.

In the High Networth Individuals category, the offering was oversubscribed 10.91 times, while the institutional buyer portion was subscribed 1.27 times.

The proceeds from the issue will be used to part finance the company's expansion plans at Umbergaon, Gujarat, and also to meet additional working capital requirements, the company said in a statement.

At present, Prakash Steelage manufactures steel pipes at two production units located in Silvasa and Umbergaon.

The IPO will constitute 35.71 per cent of the post issue paid-up capital of the company. Keynote Corporate Services is the sole book running lead manager to the issue.