Tuesday, June 10, 2008

First Winner Industries IPO subscribe 2% on day one

Initial public offering (IPO) of First Winner Industries, a Mumbai based company engaged in the business of trading of textile fabric and manufacturing of grey fabric, subscribed 2% on the first day. It received 106,500 bids as against issue size of 5.50 million shares. Total of 6,150 bids were received at cut-off price.

First Winner Industries enters the capital market with a public issue of 5.50 million equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process to raise maximum of Rs 715 million to finance its expansion activities.

The issue, which opened today (June 9), will close on June 12. The company has fixed the price band at Rs 120 to Rs 130 a share. The issue would constitute 31.02% of the post issue paid-up capital of the company. The equity shares are proposed to be listed on Bombay Stock Exchange of India (BSE) and National Stock Exchange (NSE). Almondz Global Securities is helping the company in the process of raising funds from the market.

CARE, a leading credit rating agency, has assigned `IPO Grade 1` to the public issue of the company. IPO Grade 1 indicates poor fundamentals.

Incorporated in January 2003, First Winner Industries is engaged in trading of textile fabric and manufacturing of grey fabric. The manufacturing facilities are located in Thane, Maharashtra. The unit has total installed capacity to manufacture 10.80 million meter grey fabrics per annum. In order to diversify and expand its business activities by means of forward integration, the company proposes to set up apparel manufacturing facility and new weaving unit, which will be funded by the issue of proceeds of the public issue.

No comments: