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Sanghvi Forging and Engineering IPO sails through
The Rs 36.9-crore initial public offering of Sanghvi Forging and Engineering, a forging products manufacturer, has received lukewarm response from investors. Non-institutional (NIIs) and retail investors helped the issue to sail through on last day.
The Rs 36.9-crore initial public offering of Sanghvi Forging and Engineering , a forging products manufacturer, has received lukewarm response from investors. Non-institutional (NIIs) and retail investors helped the issue to sail through on last day.
The issue, which closed today, has subscribed just 1.30 times, as per data available on National Stock Exchange. The price band was fixed at Rs 80-85 a share.
Reserved portion of NIIs and retail was subscribed nearly 2 & 3 times, respectively. However, there was no application from qualified institutional buyers.
The company is a manufacturer and exporter of forging products for the non-automotive sector. It manufactures forged flanges, forgings and machined components for various industries like oil & gas, fertilizers, power, desalination & water treatment, ship building, defence, fabrication of process equipments, instrumentation etc.
Issue proceeds are proposed to be used for partly financing the cost of setting up 15,000 MTPA open die forging unit (with single piece forging up to 40 MT) to manufacture proof machined products viz. stepped shafts, bars & hollows, blocks, flanged shafts, gear blanks, forging items.
Some portion of proceeds will also be used for working capital for the new project and for pre-operative expenses including issue expenses.
