TD Power Systems closes with 7.5% premium

Investors in the TD Power Systems have gained 7.5% on the very first day of listing today. The equity shares of the company after opening at Rs 260 on the NSE scaled an intra-day high of Rs 309.70 before closing at Rs 275.25 with a gain of Rs 19.25 or 7.52% over the issue price of Rs 256. The volume of trading on both the exchanges totalled 26.80 million equity shares.

The company, one of the leading manufacturers of AC generators, had entered the capital markets on August 24, 2011 with a public issue to raise Rs 227 crore in the price band of Rs 256 to Rs 261. 

The company proposed to utilize the net proceeds of the issue mainly to finance the expansion of the existing manufacturing plant in Dabaspet, Bangalore and for the construction of a project office in Bangalore. It also proposed to utilize part of the net proceeds to repay debt, fund working capital requirements and for other general corporate purposes.