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Vijayeshwari Textiles, a company engaged in the production of cotton yarn and textile made ups, has managed to subscribed fully as non-institutional investors supported the issue at the last moment.

The issue was subscribed just 1.10 times, as per NSE website.

A 90 lakh issue received 98.66 lakh bids while 7.49 lakh bids at cut off price.

At end hours of subscription, the  issue managed to subscribed fully with the support from non-institutional investors, as its portion subscribed 3.37 times; they put 45.53 lakh bids as against issue size of 13.50 equity shares. Qualified institutional investors also helped the issue with 100% subscription. But retail investors hit the issue; subscribed just 0.26 times.

Subscription Details

Investors	Times
Qualified institutional buyers	1.00
Non institutional investors	3.37
Retail individual investors	0.26
Total	1.10

 

 

 

Earlier it set price band for the issue between Rs 115 and Rs 130 but due to lack of subscription, it increased the date from February 13 to February 19 and reduced the price band to Rs 100-115 with Sebi's permission.

Pre-issue, the promoters' shareholding stands at 84% and is expected to go down to 48 per cent post-issue.

The proceeds will part finance the company's expansion in all its divisions, namely, spinning, weaving and processing. In the spinning segment, the company is adding 50,688 spindles (46,004 spindles), 80 looms (84 looms) in the weaving segment and the processing capabilities are being doubled to 30,000 metres per day from the current 15,000 metres per day. The company also proposes to take over a sewing facility with a capacity of 24,00,000 pieces per annum and is further setting up an additional capacity of 26,00,000 pieces per annum.

IDBI Capital Market Services is the book running lead manager for the issue.