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Monday, April 03, 2006

Kamdhenu Ispat IPO opens today for subscription

Kamdhenu Ispat entered the capital market today for subscription with an initial public offer, IPO, of 1.28 crore equity shares.

The issue comprises promoters contribution of 34.74 lakh equity shares of Rs 10 each at a premium of Rs 15 each and a net offer to the public of 91.25 lakh equity shares.

The issue will also have green shoe option of 13.68 lakh equity shares to be offered at a price of Rs 25 each. Issue will constitute 67.33% of fully diluted post-issue capital of the company (without green-shoe) and 69.2% (with green shoe).

The issue will close on April 8, 2006. The proceeds of the equity shares of Rs 10 each priced at Rs 25 would be used to set up stockyards and meet out working capital requirements.

The net proceeds of the issue would be deployed to set up five more stockyards for marketing the company's construction material, company chairman Satish Aggarwal said.

The company already has five stockyards and proposes to build five more each in Himachal Pradesh, Rajasthan, Gujarat, Madhya Pradesh and Uttar Pradesh, he said.

The current steel production capacity of the company's plant at Rajasthan including its 22 franchise steel units is over eight lakh tonnes per annum.

Kamdhenu that deals in steel bars, cement, and SS water pipes has also taken up a housing project as a franchise worth Rs 50 crore (Rs 500 million) to be developed near Chandigarh.

The company is proposed to be listed on the BSE and the NSE.

Chartered Capital and Investment is lead manager and Karvy Computershare is registrar to the issue.

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