FIEM Industries IPO subscribed 2.81 times

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FIEM Industries, automotive lighting major, closed for subscription. The company had entered in the capital market with an initial public offering, IPO of 41,00,000 equity shares of Rs 10 each at a price band of Rs 125-145 through the book-building route.

The issue has been subscribed 2.81 times, as per NSE website.

Total bids received for the issue were 1.15 crore shares against its total issue size of 41 lakh shares.

Subscription details

Subscription details	Times
Qualified institutional buyers	3.29
Non institutional investors	1.24
Retail individual investors	3.65
Employee Reservation	0.03

 

 

 

After reservation of shares for eligible employees, the net issue to the public will be 3,700,000 equity shares.

The company is going to use the funds to set up new manufacturing facilities and expand its existing ones.

The shares will be listed on NSE and BSE. IL&FS Investsmart was the lead manager to the issue while Intime Spectrum Registry was the Registrar.

The company is setting up a 100% EOU in Hosur, Tamil Nadu, and another unit at Nalagarh in Himachal Pradesh, which will enjoy various tax benefits. It presently has four units in the states of Haryana, Tamil Nadu and Karnataka.

The Nalagarh unit will enable the company to service the tractor segment as well as the northern markets.

The investment in this plant will be to the tune of Rs. 22.8 crore (Rs 228 million) while for the Hosur plant, it will be Rs 6.7 crore (Rs 67 million). The expansion of the Hosur plant has been pegged at Rs 8.5 crore (Rs 85 million) and for its Kundli, Himachal Pradesh plant, the investment is Rs 2.5 crore (Rs 25 million).

The Hosur plant output will be used to export auto mirror plates initially and later on, the complete mirror assys to Ichikoh, along with automotive lighting and signalling equipment to Piaggio, Aspock and TVS.