Bharat Wire Ropes IPO receives good response from retail and non-institutional investors

Retail investors' category subscribed 2.08 times

The initial public offer (IPO) of Bharat Wire Ropes received good response from retail and non-institutional investors. The IPO was oversubscribed. The category wise bidding data showed that the non-institutional investors (NII) category was subscribed 2.02 times. The retail investors' category was subscribed 2.08 times. The Qualified Institutional Buyers (QIB) category was subscribed 1.01 times. Employees category was subscribed just 10%. The bidding for the IPO ended yesterday, 22 March 2016.

The IPO of Bharat Wire Ropes received bids for 2.11 crore shares compared with 1.75 crore shares on offer. The IPO was subscribed 1.21 times data on NSE website showed. The price band for the IPO has been set at Rs 40-45 per share.

The company intends to use the proceeds of the IPO to set up a Rs 507 crore project to produce 66,000 tonnes per annum (tpa) of steel wire ropes at the MIDC zone at Chalisgaon, district Jalgaon, Maharashtra. The company's existing wire ropes manufacturing facility has an installed capacity of 12,000 tonnes per annum (tpa) at Atgaon in Maharashtra. It also has a pyrolysis plant with an installed capacity of 1,260 tpa at Chalisgaon for production of oil used as fuel in the current manufacturing process.

The company reported a net profit of Rs 1.08 crore on revenue from operations of Rs 43.74 crore for eight months ended November 2015. The company reported net profit of Rs 1.97 crore on revenue from operations of Rs 76.72 crore for the year ended 31 March 2015.

Powered by Capital Market - Live News