Friday, April 18, 2008

Aishwarya Telecom IPO subscribed 20 times

Aishwarya Telecom (ATL), engaged in trading and manufacture of test and measuring equipments for telecom industry received excellent response to its initial public offering (IPO) from investors, which was subscribed 20 times on closing day till 5.00 p.m.

ATL tapped the capital market with a public issue of 4 million equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process. The company fixed the price band of Rs 32 to Rs 35 a share. The issue will close on Apr. 17, 2008.

Category No. of times of total meant for the category
Qualified Institutional Buyers 8.44
Non Institutional Investors 29.14
Retail Individual Investors 33.99
Employee Reservation 1.04
Overall 20.00

CARE assigned IPO Grade 2 to the IPO of the company, which indicates below average fundamentals. The net issue will constitute 37.53% of post-issue capital of the company. The equity shares are proposed to be listed on Bombay Stock Exchange of India (BSE) and National Stock Exchange (NSE). SREI Capital Markets is helping the company to raise maximum of Rs 140 million through this public issue.

Originally incorporated in 1995, ATL is engaged in trading and manufacturing of test and measuring equipments for telecom industry. ATL`s main customers are telephone service providers, railways and defence establishments. The company has a small R&D facility at Hyderabad, manufacturing units at Dehradun and Yanam and three marketing offices at Delhi, Mumbai and Hyderabad.

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