Receives bid for just 28.77 lakh shares as against 7.16 crore shares on offer 

The IPO of Birla Cotsyn saw dismal response on day one. The issue received bids for 28.77 lakh shares (by 16:00 IST) as against 7.16 crore shares on offer. The issue was subscribed by mere 0.04 times. 

Textile maker Birla Cotsyn India entered primary market to raise Rs 144.18 crore at the upper end of the price band through a 100% book-built issue. The price band is Rs 15 to Rs 18 per equity share of face value Rs 10. The issue closes on 4 July 2008. The company's shares will be listed on BSE and NSE. Rating agency CARE has assigned Grade 3 to the IPO. 

Birla Cotsyn India is undergoing a project expansion of Rs 320 crore for setting up of weaving, processing, garmenting units. It also plans to begin retail operations with 20 stores by financial year 2010. 

Birla Cotsyn, a part of Yash Birla Group, is primarily engaged in the business of manufacture of synthetic yarn, cotton ginning, pressing and oil expelling at its facilities located at various places in Maharashtra. 

The company reported 851.90% spurt in net profit to Rs 2.57 crore on 1300.80% jump in net sales to Rs 53.51 crore in the year ended March 2007 over the year ended March 2006.