Precision Pipes and Profiles Company IPO was subscribed 0.69 times on the third day of opening. The issue received total bids for 36.90 lakh shares as against 53.57 lakh shares on offer. The price band of the issue has been fixed between Rs 140 and Rs 150 per equity share of face value of Rs 10 each. The bids will close on 20 December 2007.
The company is hoping to raise around Rs 75 crore from the issue to fund its expansion initiatives.
Post the issue, the promoter and promoter group holding would be reduced to between 62.69% and 64.29%.
The company is currently in the process of increasing its production capabilities from 4.75 million kg to 9.14 million kg by 2008-09. It is also setting up a new plant for manufacturing of auto components and also a new plant for electrical outlet system products for Power and Data Corporation, Australia.
The total investment is expected to be around Rs 106 crore, out of which Rs 75 crore will be from the IPO, Rs 25 crore through term loans and the remaining Rs 6 crore from internal accruals.
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