The initial public offer (IPO) of TD Power Systems was subscribed 6% by 15:00 IST on the first day of the bidding for the IPO today, 24 August 2011. The IPO got bids for 4.63 lakh shares, compared with 75.62 lakh shares on offer.
The price band for the IPO has been fixed between Rs 256 to Rs 261 per equity share of face value Rs 10 each. The issue closes on 26 August 2011.
Credit Analysis & Research (CARE) has assigned grade 4/5 to the issue, indicating above average fundamentals.
TD Power is one of the leading manufacturers of alternate current (AC) generators of 1-52 MW output capacity range. Apart from AC Generators, the company also manufacturers motors.
The proceeds from the IPO will be used mainly to finance the expansion of the existing manufacturing plant in Dabaspet in Bangalore, and for the construction of a project office in Bangalore. The company also proposes to utilise part of the IPO proceeds to repay debt, fund working capital requirements and for other general company purposes.
TD Power Systems raised Rs 33.39 crore by placing 13.04 lakh equity shares to five anchor investors at Rs 256 each on Tuesday, 23 August 2011. The five anchor investors are Baring India Private Equity Fund Listed Investments, IDFC Premier Equity Fund, Ironwood Investment Holdings, Smallcap World Fund and American Fund Insurance Series Global Small Capitalisation Fund.
Smallcap World Fund was issued 6.33 lakh shares, or 48.54% of the total shares allocated to anchor investors, followed by IDFC Premier Equity Fund (3.90 lakh shares or 29.94%) and American Fund Insurance (2.26 lakh shares or 17.33%). Baring India and Ironwood Investment (27,275 shares or 2.09%).