Shares of Prakash Steelage (PSL), engaged in the manufacturing of seamless & welded stainless steel Pipes, Tubes and U-tubes, skyrocketed on huge demand on day one. A share closed at Rs 187.95, a premium of 70.86% over its issue price of Rs 110 per share on BSE.
It touched an intraday high of Rs 201.90 and low of Rs 117. Total volume traded was more than 10 times of its issue size; about 10.85 crore shares of PSL traded on exchanges while issue size of 62.5 lakh shares.
A share ended at Rs 184.90, up 68.09%, after hitting a high of Rs 200 and low of Rs 117 on NSE.
While addressing a press conference, the management of Prakash Steelage said, "We will prove ourself on the trust that investors have shown in the initial public offer (IPO). We will maintain a long-term relationship with investors and will see how they will be benefitted from this investment."
PSL raised Rs 68.75 crore through the public offer of 62.5 lakh equity shares, which was subscribed to 4.53 times. The price band was at Rs 100-110 per share.
The issue proceeds will be used for partial financing its expansion plan at the company’s existing manufacturing facility at Umbergaon, Gujarat and additional working capital requirement.
Promoter Prakash said, "We will use the proceeds from the issue for expanding capacity by 6400 tonne, which will then stand at 19000 tonne and rest of the money will be used for working capital requirement. We won't use for repayment of debt."
source : moneycontrol.com
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DENIP Consultants Pvt Ltd
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