Prakash Steelage IPO to open on Aug 5

Prakash Steelage (PSL), engaged in the manufacturing of seamless & welded stainless steel pipes, tubes and U-tubes, has fixed the price band between Rs 100 and Rs 110 per equity share for a public issue of 62.5 lakh equity shares of Rs 10 each for cash aggregating to Rs 62.50 crore (lower end of the price band) and Rs 68.75 crore (upper end of the price band).

The issue will constitute 35.71% of the post Issue paid-up capital. Upto 1 lakh equity shares will be reserved in the issue for subscription by eligible employees. The net issue (The issue less the employee reservation portion) will constitute 35.14% of the fully diluted post Issue paid-up capital of the company.

The issue will open on August 5, 2010, for all bidders and close on August 9, 2010, for QIB bidders and on August 10, 2010, for non-QIB bidders.

The objects of the issue are, amongst others, to raise resources to part finance its expansion plan at the Company’s existing manufacturing facility at Umbergaon, Gujarat and also to meet the additional working capital requirement.