Investors in the equity shares of Aanchal Ispat Limited gained 10.5% on the listing of the company’s shares on the SME platform of the Bombay Stock Exchange (BSE) today. Shares of the company listed at Rs 22.10, up 10.5 percent against its issue price of Rs 20 per equity share. It touched an intraday high of Rs 22.90 and an intraday low of Rs 21.00.
The Company had entered the capital market on 24th November 2014 with a public issue of 80,04,000 equity shares
of Rs 10 each at a price of Rs 20 each with a premium of Rs 10, aggregating to Rs 1600.80 lacs. The Issue closed on 26th November 2014. Inventure Merchant Banker Services Pvt Ltd is the Lead Manager and Purva Share Registry (India) Pvt Ltd is the Registrar to the Issue.
The Company proposes to invest the net proceeds of the Issue
for expansion and modernization of the TMT Bar manufacturing facilities by upgradation and automation and to meet the additional working capital requirements. Currently they have two manufacturing facilities, one for TMT Re-bars and other for Structural Re-bars.
The Company’s total revenue has gone up from Rs 141.06 crores for the year ended 31st March 2013 to Rs 191.57 crores for the year ended 31st March 2014 and the net profits for the corresponding period was up from Rs 58.48 lacs to Rs 75.17 lacs. For the first half of the current fiscal ended 30th September 2014, the total revenue was Rs 96.97 crores with a net profit of Rs 35.13 lacs.