Niraj Cements IPO gets fully subscribed

MUMBAI: The initial public offer of Niraj Cements and Structurals got fully subscribed on the final day of its offer. The issue received bids for 56.56 lakh shares against 32.50 lakh shares on offer, generating a demand of 1.74 times, data available on the National Stock Exchange showed. The portion reserved for non-institutional investors got subscribed four times, while the portion for retail investors received bids for 3.80 times the shares on offer.

The portion reserved for qualified institutional buyers, however, remained un-subscribed. The price band of the issue has been fixed between Rs 175- Rs 190. The issue, which opened on May 26, closed yesterday.

The company is planning to raise about Rs 61.75 crore at the upper end of the price-band. The issue comprises a reservation of 3.25 lakh shares for eligible employees and net issue to the public of 29.25 lakh equity shares. The company would use the iss ue proceeds to fund its capital equipment requirement and meet working capital needs.

Credit rating firm CARE has assigned a GRADE 1 to the issue. Allbank Finance is acting as the book running lead manager for the issue. The company plans to list itself on the Bombay Stock Exchange. - PTI