The initial public offering (IPO) of Titagarh Wagons was almost fully subscribed by the end of the third day of the issue today. The IPO received bids for 23.53 lakh shares as against 23.83 lakh shares on offer. The issue was subscribed 0.99 times.
The retail portion was subscribed by meager 0.07 times while the qualified institutional buyers (QIBs) portion was subscribed 1.59 times and the non-institutional investors portion was subscribed 0.17 times. Employee reservation portion got no response.
Titagarh Wagons, a private sector railway wagon manufacturer in India, has set Rs 540 - Rs 610 per share price band for the IPO.
Private equity investor Blackstone has picked up a minority interest in Titagarh Wagons for Rs 672 a share, which is the fifth major investor to put money in Titagarh Wagons. Other investors include GE Capital Infrastructure (15%), JP Morgan (5%), 2i Capital (6%) and ChrysCapital (6.5%).
Titagarh Wagons is a leading private sector wagon manufacturer in India. It manufactures railway wagons, bailey bridges, heavy earth moving and mining equipment, steel and SG iron castings of moderate to complex configuration etc. It is an industry partner to Defence Research and Development Organization, Ministry of Defence, manufactures special purpose wagons, shelters and other engineering equipments for defence.
It is into three broad business lines - wagon manufacturing, special projects and heavy earth moving and mining equipment division.
Money raised through this IPO will be used for setting up an EMU manufacturing facility at Uttarpara unit, modernising and expanding the existing facilities at Titagarh and Uttarpara units, setting up an axle machining and wheelset assembly facility at Uttarpara unit, constructing a corporate office and a design cum research and development office. Money will also be used for strategic acquisition or investments and brand building exercise and General corporate purposes.
The existing order book of the company stands at Rs 7,53.11 crore with the rolling stock division constituting nearly Rs 6,69.39 crore as on 31 January 2008.
The company reported a net profit of Rs 26.02 crore on sales of Rs 207.53 crore for sixth months ended September 2007.
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