Thejo Engineering SME IPO has received an excellent response from investors on the very first day of its opening today and was subscribed 54% overall with QIB portion fully subscribed. The issue will close for subscription on September 6, 2012.

The company is an engineering solution provider for bulk material handling, mineral processing and corrosion protection to the core sector industries like mining, power, steel, cement, ports, fertilizers etc.

IDBI Capital Market Services is the sole book running lead manager for the Issue and Cameo Corporate Services Ltd is the registrar to the Issue.

The company proposes to invest the net proceeds of the issue to set up a poly-urethane unit with investment of Rs 68.28 lakhs, expansion of the existing facility with an investment of Rs 6.87 crore, setting up R&D unit with a total outlay of Rs 2.83 crore and setting up a lining plant with a total cost of Rs 1.69 crore, all at Chennai. It also proposes to invest Rs 6.42 crore in Thejo Australia Pty Ltd., its Australian subsidiary.