Precision Pipes IPO Subscribed 7.21 Times

MUMBAI: The initial public offer of Precision Pipes was subscribed 7.21 times on the last day of the issue on Thursday, as per NSE website.

The issue got bids for 3.86 crore shares as against 53.57 lakh shares. At cut off price, 2.35 crore bids were received. The issue was priced between Rs 140 and Rs 150 per share.

The company plans to raise around Rs 75 crore from the issue, and use the proceeds towards setting up two new manufacturing plants for auto components and electrical outlet system products for Power and Data Corporation of Australia.

The company also plans to use the funds to part-finance the doubling of capacity to 9.9 million kg by 2008-09 at a total outlay of Rs 94.6 crore.

The total investment is expected to be around Rs 106 crore, out of which Rs 75 crore will be from the IPO, Rs 25 crore through term loans and remaining Rs 6 crore from internal accruals.

CRISIL had assigned Grade '4/5' to the issue, indicating its fundamentals are above average relative to other listed equities.

The shares will be listed on the Bombay Stock Exchange and National Stock Exchange.