The Rs 25-crore IPO of Veto Switchgears and Cables, a company engaged in the manufacture and sale of wires & cables and electrical accessories, has been subscribed 0.70 time on Day 2, as per data available on National Stock Exchange.
The issue received bids for 36.69 lakh equity shares as against issue size of 52.08 lakh shares.
Each type of investor has participated in the issue that will close for subscription on Wednesday, December 5, 2012. The reserved portion of qualified institutional investors and retail subscribed 0.4 time each while non-institutional investors' portion oversubscribed 1.02 times.
The price band for the issue is at Rs 48-50 per share. Bids can be made for a minimum of 3,000 equity shares and in multiples of 3,000 shares thereafter.
Veto Switchgears supplies products under the brands “VETO” and “VIMAL POWER”.
Veto intends to use issue proceeds for modernisation of existing facility at Hardwar, Uttarakhand (with an outlay of Rs 4.7 crore); financing incremental long-term working capital requirement (with a cost of Rs 15.80 crore); enhancement of brand through advertising and other brand-building activities (with Rs 2 crore); and general corporate purposes.
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