Shekhawati Poly-Yarn debuts at Rs 50 on NSE

Textile firm Shekhawati Poly-Yarn's shares started the first session at Rs 50, a premium of 66.67% over an issue price of Rs 30 a share on National Stock Exchange. At 9:40 hours IST, it was trading at Rs 37.10, with volume of 1.16 crore equity shares though it wiped out some gains due to profit booking.

On Bombay Stock Exchange, the stock was trading at Rs 38.10, after opening at Rs 32.50. Traded volume was at Rs 1.25 crore equity shares so far. Shekhawati is presently engaged in manufacturing of texturised and twisted yarn. Now it proposed to commence manufacturing of Knitted Fabric from Texturised Yarn. The company raised Rs 36 crore through its initial public offering of 1.2 crore equity shares at a fixed price of Rs 30 a share. Issue proceeds 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.