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Oct 07 2008
Alkali Metals IPO undersubscribed on day 1

The initial public offer (IPO) of Alkali Metals was undersubscribed on the first day of its opening. The issue received total bids for just 390 shares as against 25.50 lakh shares on offer.

The issue, comprising 25.04% of fully diluted capital, will close on 10 October 2008. The price band has been fixed at Rs 90 at the lower end and Rs 105 at the upper end per equity share of Rs 10.

The issue is managed by Saffron Capital and Chartered Capital and the equity shares will be listed on the BSE and NSE.

Alkali Metals is a Hyderabad-based manufacturer of fine chemicals. The company intends to utilise the issue proceeds to finance their expansion plan that envisages setting up of an Active Pharmaceutical Ingredients (API) plant in the Pharma City near Vizag in Andhra Pradesh. The company sees opportunities to serve as a contract manufacturer.

Rating agency ICRA has assigned an IPO Grade 2 to the Alkali Metals IPO.

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