On the second day of Bharat Earth Movers FPO, the issue was 1.16 times subscribed. It received total bids for 57.06 lakh shares from the total issue size of 49 lakh shares. The total bids in the Qualified Institutional Buyers (QIBs) category were 55.71 lakh shares. In this category, the Domestic Financial Institutions bid for 22.05 lakh shares and Mutual Funds bid for 33.66 lakh shares. There were no bids by the Foreign Institutional Investors in the issue.
The Non Institutional Investors bid for 1980 shares. The Retail investors bid for 1.33 lakh shares, of which 1.19 shares were bid at cut off price and 13,930 shares were bid at price.
The FPO has a price band of Rs 1020 - 1090 per share and will close on 3 July 2007.
The issue would constitute 11.77% of the fully diluted post issue paid-up capital of BEML.
At the top end of the price band of Rs 1090, PE multiple works out to 22.15, based on its year ended March 2007 EPS of 49.20 on post FPO equity of Rs 41.65 crore.
BEML's net profit rose 8.58% to Rs 93.51 crore in the Q4 March 2007 (Rs 86.12 crore). Sales moved up 16.60% to Rs 938.42 crore in the Q4 March 2007 (Rs 804.80 crore).
The net profit summed 9.63% to Rs 204.93 crore in the year ended March 2007 (Rs 186.93 crore). Sales scaled up 17.69% to Rs 2423.87 crore in FY 2007 (Rs 2059.54 crore).
BEML is the second largest manufacturer of earthmoving equipments in Asia, and commands 70% market share in domestic industry. The ministry of defence is BEMLs largest customer. The companys other customers are Indian Railways, Delhi Metro Rail Corporation and other metro rail transit agencies.
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