The initial public offering of Gyscoal Alloys, a manufacturer of stainless steel products, will open for subscription during October 13-15, 2010. The company will offer 77 lakh equity shares through IPO, which would constitute 48.65% of the fully diluted post issue paid up capital of the company.
The company has fixed a price band at Rs 65-71 a share. Bids can be made for a minimum of 90 equity shares and in multiples of 90 shares thereafter.
Gyscoal manufactures different grades of Stainless Steel products ranging between 200 series to 400 series. Company proposes to increase its melting capacity from existing 18,000 MT per annum by 1,00,000 MT per annum to 1,18,000 MT per annum. It has been exporting a wide range of products to various countries namely Thailand, Philippines, Malaysia, Kenya etc.
The company aims to raise Rs 50.05-54.67 crore through issue (at respective price band). Issue proceeds are proposed to be used for capital expenditure for enhancing the production capctiy of melting section by 100,000 MT per annum and long term working capital requirements.
This issue has been graded by CARE as 2/5, indicating below average fundamentals.
Chartered Capital And Investment Limited is the book running lead manager to issue and Link Intime India Private Limited is registrar.
