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MUMBAI, Sept 4 (Reuters) - Shares of metallurgical coke maker
Austral Coke & Projects Ltd <ACPL.BO> rose sharply above their
issue price after listing in a weak market, the second strong
debut this week.
Austral shares listed at 207 rupees on the BSE on Thursday, 6
percent higher from its issue price of 196 rupees a share. They
hit a high of 308.80 rupees, but were trading at 257.45 rupees,
up 32 percent.
So far, nearly 10.5 million shares have been traded on the
BSE and NSE.
Austral expects revenue of 5 billion rupees for 2008/09, on
the back of strong demand for metallurgical coke, its Managing
Director said.
"The coke business is on an upswing right now. Coke is a
long-term commodity. Most coke producers globally are sold out
for the next 5-7 years," Rishi Raj Agarwal told news channel
CNBC-TV18.
He estimated 2008/09 net profit at 1 billion rupees.
The proceeds of Austral's 7.26-million-share issue are to be
used for raising production capacity of low-ash metallurgical
coke to 525,000 tonnes a year, from 375,000 tonnes a year now,
and for setting up an 8 megawatt captive power plant.
"Considering execution risks, and limited upside in coke
prices hereon, we believe Austral Coke at the upper price
band is fairly valued," Angel Broking said in a note to clients.
It justified a 'neutral' rating for the offer citing strong
volume growth momentum and upsides from favourable developments
on the mining front.
Earlier this week, shares of iron ore miner Resurgere Mines &
Minerals <RESU.BO> more than doubled on debut, in high-volume
trade, on buying interest from funds.
Most new issues in the past three months listed at modest
premiums, but have slipped near or below their issue price, with
the benchmark index <.BSESN> slipping about 5 percent in the
period.
(Reporting by Prashant Mehra; editing by Sunil Nair)
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Keywords: AUSTRAL LISTING/