Shekhawati Poly-Yarn: Basis of allotment
Textile firm Shekhawati Poly-Yarn raised Rs 36 crore through its initial public offering of 1.2 crore equity shares at a fixed price of Rs 30 a share. The issue constituted 54.54% of the fully diluted post-issue capital of company.
January 10, 2011 / 15:07 IST
Textile firm Shekhawati Poly-Yarn raised Rs 36 crore through its initial public offering of 1.2 crore equity shares at a fixed price of Rs 30 a share. The issue constituted 54.54% of the fully diluted post-issue capital of company.
The issue was opened for subscription during December 27-29, 2010, which was subscribed 6.79 times. It had received 20,272 applications for 8,15,48,800 equity shares.A reserved portion of retail investors was subscribed 11.678 times; they received more than 60 lakh shares in allotment and the rest of shares allotted to non-retail investors, which portion subscribed 1.91 times.In retail category, a person who applied for 200 shares received same quantity of shares in allotment in ratio of 2:23 and who applied for 2200 shares too received 200 equity shares in ratio of 6:7.A person who applied for 4600 equity shares got 394 shares in allotment and who applied for 6600 shares allotted 565 shares in ratio of 1:1 each.Shekhawati is presently engaged in manufacturing of texturised and twisted yarn. Now it proposes to commence manufacturing of Knitted Fabric from Texturised Yarn, being one of the objects of the proposed public issue.Issue proceeds are proposed to 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.Equity shares are proposed to be listed on Bombay Stock Exchange and National Stock Exchange. 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!
