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Monday, May 29, 2006

Rathi Udyog FPO fixes issue price at Rs 50

Rathi Udyog, a leading manufacturer of long steel products in Northern India, announced that issue price has been fixed at the lower end of the price band of Rs 50 per share.

The company had entered the capital market with a follow-on public issue of equity shares to raise an aggregate amount of Rs 98 crore (Rs 980 million), of which the promoter’s contribution was Rs 40 crore (Rs 400 million) and the net issue to public Rs 58 crore (Rs 580 million). The issue, which was done through the book building process, which was opened for subscription/bids on May 19, 2006 and closed on May 25, 2006.

Despite a volatile secondary market during the period, the issue received good response and was oversubscribed by 1.27 times. The qualified institutional buyer’s portion was subscribed by 1.07 times and the retail portion was subscribed by 1.09 times, while the non-institutional investors’ portion received 2.31 times response.

The shares have proposed to be listed on Bombay Stock Exchange and Delhi Stock Exchange Association.

The book running lead manager to the issue was UTI Securities and BOB Capital Markets acted as the Co BRLM.

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