Sejal Architectural Glass IPO subscribes 32.84% on day one

Initial public offering of Sejal Architectural Glass, a Mumbai based company engaged in the business of processing glass, received good response from investors on the first day, which was subscribed 32%. It received 2.94 million bids as against issue size of 9.19 million shares. Total of 1.87 million bids were received at cut-off price.

Sejal tapped the capital market with a public issue of 9,194,155 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 1,057.33 million to finance its expansion plans.

The issue will close on June 12. It has fixed the price band at Rs 105 to Rs 115 a share. The issue would constitute 32.84% of the fully diluted post issue paid-up equity capital of the company. The equity shares are proposed to be listed on Bombay Stock Exchange of India (BSE) and National Stock Exchange (NSE). Saffron Capital Advisors is helping to the company in the process of raising funds from the market.

The issue has been graded by the leading credit rating agency CRISIL. It has assigned the IPO grade `1/5`, indicating that the fundamentals of the issue are poor relative to other listed equity securities in India.

Incorporated in January 1998, Sejal is engaged in the business of processing glass. The company has processing facilities for insulating, toughened, laminated glasses and for decorative glass. The existing plant of the company is located in Silvassa. As a step towards backward integration, the company proposes to set up a new manufacturing facility for float glass with a capacity of 200,750 MT per annum at Bharuch, Gujarat.