Prakash Steelage zooms 23% in early trade on debut

Prakash Steelage today made a stellar debut and zoomed over 23 per cent in early trade on the BSE, as against the IPO issue price of Rs 110 per share.

Defying the weak broader market, Prakash Steelage listed on the Bombay Stock Exchange with an initial gain of 6.36 per cent and soon climbed 23.5 per cent to hit a high of Rs 135.85 in early trade.

A similar trend was seen on the National Stock Exchange, where the scrip was quoting at Rs 133.30, higher by 21.18 per cent in the pre-noon session.
    
Steel pipe manufacturer Prakash Steelage, that has raised Rs 68.75 crore through an initial public offer, has fixed the issue price at Rs 110 per share -- the upper end of the price band. The price range of the IPO was Rs 100 to Rs 110 apiece.
    
The issue was open between August 5 and August 10, had attracted huge participation from non-institutional investors and was subscribed 4.53 times.
    
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.
    
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.