Sudar Garments, Acropetal Tech IPOs fully subscribed

Initial public offers of garment manufacturer Sudar Garments and Bangalore based IT service provider Acropetal Technologies subscribed 1.55 times and 1.28 times on last day, respectively.

The issue of Sudar has received bids for 1.4 crore equity shares as against issue size of 90.88 lakh shares.

The reserved portion of qualified institutional buyers, non-institutional and retail investors were subscribed 0.17 times, 4.47 times and 2.27 times, respectively.

The price band was fixed at Rs 72 to Rs 77 per equity share of Rs 10 each.

The company has proposed to utilise a part of the net proceeds of the issue for expansion of the existing apparel manufacturing unit located in Khalapur Taluka of Raigad District near Mumbai. The investment in expansion is estimated at Rs 26.29 crore. The additional working capital requirement of Rs 27.30 crore is on the basis of additional funds required after the implementation of expansion plans of the company. The expansion plans are expected to be completed in the FY 2011-2012. 

Further, Sudar Garments intends to have a total of 25 Retail outlets in major cities of South India and towards this, it has earmarked a sum of Rs 2.40 crore. Out of these, the company proposes to open 10 own retail outlets on leased premises and balance 15 retail outlets proposed to be operated on franchisee basis. It has finalized the locations for the proposed own outlets in the Chennai city.

Bangalore based IT service provider Acropetal Technologies' Rs 170 crore initial public offering (IPO) has received bids for 2.48 crore equity shares as against issue size of about 1.93 crore shares.

The reserved portion of qualified institutional buyers, non-institutional and retail investors were subscribed 1.12 times, 2 times and 1.21 times, respectively.

The price band was fixed at Rs 88-90 a share. The company intends to use issue proceeds for proposed acquisitions with the cost of Rs 55 crore, setting up of software development centre and corporate office with Rs 26.2 crore, expansion and establishment of overseas offices with Rs 19.45 crore, repayment of term loans of Rs 25 crore and long term working capital requirements of Rs 25 crore.

Acropetal offers IT/ITES solutions and a broad spectrum of engineering design services to reduce product design cycle time and costs.