Prakash Steelage sets issue price at Rs 110/sh

Nifty BSE | NSE 10/02/12 Are Mutual Funds betting on Nifty?

Prakash Steelage (PSL), engaged in the manufacturing of seamless & welded stainless steel Pipes, Tubes and U-tubes, has fixed the issue price at Rs 110 per equity share (at upper end of the price band of Rs 100-110).

The company has raised Rs 68.75 crore through this public offer of 62.5 lakh equity shares. The issue, which closed August 10, was subscribed to 4.53 times.

The retail bidder portion was subscribed 6.62 times, the non institutional bidder 10.91 times and the qualified institutional bidders' portion 1.27 times.

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.

The company clocked a turnover of Rs 437.10 crore for the year ended March 31, 2010, with EBIDTA of Rs 45.14 crore and profit after tax of Rs 17.82 crore.