Shares of VKS Projects settled at Rs 55.60 on BSE, a 1.09% premium over initial public offer price of Rs 55 per share.

The equilibrium price of VKS Projects during the one-hour auction in pre-open session was set at Rs 55.80, a premium of 1.45% to the initial public offer (IPO) price of Rs 55.

In light of high volatility and price movement observed on first day of trading, market regulator Securities & Exchange Board of India (Sebi) had vide its circular dated 20 January 2012 put in place a framework of trade controls for IPO and re-listed scrips. Price bands for issue size up to Rs 250 crore for the first day in the normal trading session will be 5% of the equilibrium price. Additionally, the trading shall take place in trade to trade segment for first 10 days from commencement of trading. For issue size greater than Rs 250 crore, the applicable price bands for the first day are fixed at 20% of the equilibrium price.

On BSE, 11.53 lakh shares were traded on the counter. The stock hit a high of Rs 56 and a low of Rs 53.05 so far during the day.

VKS Projects' initial public offer (IPO) closed on 4 July 2012 with a subscription of 1.03 times. The IPO received bids for 1.02 crore shares compared with 1 crore shares on offer, data showed on NSE. The company had fixed an IPO price band of Rs 55 to Rs 60.

The qualified institutional buyers (QIBs) category was subscribed 1.15 times. The retail investors category was subscribed 1.13 times. The non-institutional investors (NII) category was undersubscribed. The NII category received bids for 5.74 lakh shares as against 15 lakh shares offered by the company.

VKS Projects is engaged in the business of undertaking EPC/turnkey item-rate contract for mechanical, piping and heavy equipment erections for various industrial and infrastructure projects. Of late the company is also forayed into land development for industrial/infra projects.

VKS Projects proposes to use the proceeds of the issue to meet long term working capital requirement to the tune of Rs 15 crore, finance procurement of construction equipment/machinery of Rs 22.64 crore, finance setting up of engineering design studio/office and training centres in Chennai, Cochin, Delhi, Hyderabad and Ahmedabad of Rs 10 crore and balance for general corporate purposes and meet issue expenses.

The company's order book as at end of 31 December 2011 stood at Rs 98.25 crore, translating into 1.6 times of its revenue for the year ended March 2011 (FY 2011).

VKS Projects reported a net profit of Rs 5.63 crore on sales of Rs 97.50 crore in the nine-months ended December 2011.