TD Power Systems surges 12% after initial sell-off

Shares of TD Power Systems, a manufacturer of AC generator, climbed above its issue price despite a weak opening. It touched a high of Rs 286 in early trade, a rise of nearly 12% over issue price of Rs 256, after opening at Rs 251.60.

At 9:33 hours IST, the stock was trading at Rs 275.85 on the BSE, with volume of 12 lakh equity shares.

Manufacturer of AC generator has output capacity in the range of 1 MW to 52 MW.

The company proposed to utilize the net proceeds (Rs 227 crore minus issue expenses) 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.

It also executes Turbine Generator (TG) island projects for steam turbine power plants with output capacity up to 52 MW using a Japanese turbine combined with TD Power generator.