Burnpur Cement (BCL) will debut on stock exchanges on Thursday, 3 January 2008. The stock will be placed in B1 group on BSE. At the IPO price of Rs 12, the PE multiple works out to 40, based on the year ended March 2007 EPS of Rs 0.30.
The fixed price initial public offer (IPO) of Burnpur Cement (BCL), which closed on 3 December 2007, was subscribed 15.19 times.
The company offered 2.19 crore shares at a fixed price of Rs 12 per share.
The company had received applications worth Rs 399.11 crore against the IPO of Rs 26.28 crores. The company had offered its shares of Rs 10 each for cash at a premium of Rs 2 per share.
Burnpur Cements manufactures Portland Slag Cement at Asansol, West Bengal.
The company aims to set up 800 tonne per day capacity clinkerisation and cement grinding unit, expandable to 1,600 tonne per day, at Patratu in Jharkhand.
Net proceeds from the IPO will used for the above said capacity expansion.
The company will roll-out clinkers, ordinary portland cement, Portland Pozzolona Cement and Portland Slag Cement from its new plant. Commercial production is expected to begin by the end of 2008.
Burnpur Cements reported a profit after tax of Rs 1.14 crore on net sales of Rs 23.66 crore in the year ended March 2007.|