Precision Camshafts IPO subscribed 29% on second day

The initial public offer of Precision Camshafts was subscribed 29 percent on the second day of the offer today. The IPO received bids for 46,14,320 shares, against the total issue size of 1,58,67,366 scrips, data available with NSE till 1700 hours showed. The public issue, which opened for subscription yesterday, closes tomorrow and the company has set a price band of Rs 180-186 for the sale.

The maiden public offering comprises fresh issue aggregating up to Rs 240 crore and an offer for sale of up to 91,50,000 equity shares of Rs 10 each. From six anchor investors, the company has raised Rs 123 crore by selling shares at the upper price band. The anchor investors were - SBI Mutual Fund, IDFC Mutual Fund, ICICI Prudential Mutual Fund, HDFC Trustee Company Ltd, Birla Sunlife Trustee company and Canara Robeco Mutual Fund.

Proceeds from the fresh issue would be utilised for establishment of a machine shop for ductile iron camshafts at the export oriented unit (EOU) in Solapur, Maharashtra at a cost of Rs 200 crore and for other general corporate purposes. The company also proposes to set up two new machine shops at Solapur, for ductile iron camshafts and assembled camshafts by fiscal 2017 and 2018, respectively. SBI Capital Markets, HDFC Bank and IIFL Holdings are the book running lead managers to the issue.