A2Z Maintenance & Engineering Services falls below IPO price

capital market | Mumbai |

A2Z Maintenance & Engineering Services was trading at Rs 359 at 09:16 IST on BSE, a 10.25% discount to the initial public offer price of Rs 400.

Meanwhile, the BSE Sensex was up 31.09 points, or 0.16%, to 20,046.89

The stock debuted at Rs 390, a 2.5% discount to the initial public offer (IPO) price. The scrip hit a high of Rs 398.90 and low of Rs 352.65 so far during the day. The counter clocked volume of 5.14 lakh shares.

The IPO had managed just to scrape through early this month. The company had priced the IPO at the bottom end of the Rs 400-410 a share price band. The qualified institutional buyers (QIBs) category was subscribed 0.68 times, the non-institutional investors category was bid 3.12 times and the retail investors category was subscribed just 0.33 times.

Ahead of the opening of the IPO, A2Z Maintenance & Engineering Services had raised Rs 125.51 crore by selling 31.37 lakh shares at Rs 400 per share to seven anchor investors.

A2Z will use the proceeds of the IPO for the upcoming biomass-based power plants, to partly repay a loan and for general corporate purposes.

A2Z is in the business of installation of power distribution lines and sub-stations. Apart from the EPC/engineering services business, the company is significantly involved in generating power from renewable energy sources. It also provides municipal solid waste (MSW) management services. The company is also into developing information technology solutions for power utilities.

The company's consolidated net profit rose 65.70% to Rs 97.87 crore on 70.40% rise in net sales to Rs 1219.29 crore in the year ended March 2010 over the year ended March 2009.

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