Shekhawati Poly-Yarn ends with 58% premium on BSE
It was a good debut for equity shares of textile firm Shekhawati Poly-Yarn - a share touched an intraday high of Rs 69.70, a premium of Rs 130% over an issue price of Rs 30.
January 12, 2011 / 18:41 IST
Textile firm Shekhawati Poly-Yarn had a good debut on the exchanges as the scrip touched an intraday high of Rs 69.70, a premium of Rs 130% over an issue price of Rs 30. But profit booking at higher levels in last one hour of trade dragged the stock to settle at Rs 47.50, up 58.3% on Bombay Stock Exchange.
There was huge difference between closing prices on both exchanges. On NSE, the stock closed at Rs 32.05, up 6.83% after hitting a high of Rs 69.70 and low of Rs 30.7. Total volume traded on exchanges was 18.7 times to 22,44,61,495 equity shares compared to issue size of 1.2 crore shares. Shekhawati Poly's 30% of issue was alloted to Sun Finlease.Company's MD, Mukesh Ruia expects turnover of Rs 125 crore and profit of Rs 3.5 crore in FY11. "We have debt of Rs 45 crore," he said in an interview with CNBC-Awaaz.Shekhawati is presently engaged in manufacturing of texturised and twisted yarn. Issue proceeds of Rs 36 crore will be used for buying 30 new twisting machines and installation of 30 new knitting machines; buying corporate office at an estimated cost of Rs 325 lakh and working capital requirements.After this expansion, the company will have 35 machines for twisting yarn with a capacity of 4,620 MTPA, 30 machines for knitting yarn with 1,980 MTPA and 20 for texturising yean with capacity of 27,400 MTPA.Hem Securities was the book running lead manager to the issue. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
