Thursday, June 28, 2007

Meghmani Organics IPO lists at 75% premium

Meghmani Organics Ltd. listed on the stock exchanges Thursday. It opened at Rs 33.25 on the National Stock Exchange, a premium of 75% to the issue price of Rs 19. The low was Rs 26.

The six crore share-public offer was subscribed 23.94 times. The price band of the issue was Rs 17-Rs 19 per share of Re 1 each.The issue was subscribed 44.75 times by non-institutional investors. Of the 3.60 crore shares on offer, qualified institutional buyers applied 19.43 times, while retail investors subscribed the balance 26.01 times.

The objects of the issue included financing a new high performance pigment plant at Vatva, Ahmedabad and a multi-purpose agro-chemicals plant at Panoli.

The company will also use the proceeds to invest in Meghmani Energy, finance a 3MW captive power plant at Chharodi, Gujarat, for diversification opportunities and working capital requirements.

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