Readymade Steel India IPO ends with 1.68 times subscription

capital market | Mumbai |

Receives bids for 65.03 lakh shares

The initial public offer (IPO) of Readymade Steel India, a steel fabricating firm, was subscribed 1.68 times. The issue closed on Wednesday, 29 June 2011. The IPO received bids for 65.03 lakh shares compared with 38.60 lakh shares on offer.

The qualified institutional buyers (QIBs) category remained undersubscribed. Total bids in this category were 62,580 shares compared with 19.30 lakh shares reserved for the QIB section.

Non institutional investors category was subscribed by 1.37 times and retail investors category was subscribed by 4.18 times.

The company had set price band of Rs 90-108 per share for the IPO. The IPO was graded by CARE with a grade of 2/5, indicating below average fundamentals.

Readymade Steel India has an installed capacity of 27,000 metric tonnes per annum (MTPA) for processing of steel used in construction industry, primarily reinforcement bars, into various shapes and sizes. It is primarily in the business of providing ready to use steel for construction activities to the infrastructure industry.

The company intends to use the proceeds from the IPO to enhance the capacity at Khopoli and for setting up of new facilities near New Delhi and Raipur.

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