The initial
public offer (IPO) of textile firm Shekhawati Poly-Yarn closed for
subscription on Wednesday, December 29. The issue has been subscribed
10.4 times so far, as per information provided by its registrar Sharex
Dynamic (India) Pvt Ltd.
It has received bids for 12,47,93,770
equity shares as against issue size of 1.2 crore equity shares. The
company has collected Rs 374.38 crore at issue price of Rs 30 a share as
against its IPO size of Rs 36 crore.
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Since it was a fixed price issue, hence
the complete information about the subscription will be disclosed by
next week, the registrar says.
The company has received 22,226
applications for its IPO in total, including 5,792 through ASBA. 7,883
applications through HDFC Bank and the rest 8,551 via IndusInd Bank.
The issue will constitute 54.54% of the fully diluted post issue equity share capital of the company.
Shekhawati is presently engaged in
manufacturing of texturised and twisted yarn. Now it proposes to
commence manufacturing of Knitted Fabric from Texturised Yarn, being one
of the objects of the proposed public issue.
Issue proceeds are proposed to be used
for buying 30 new twisting machines and installation of 30 new knitting
machines; buying corporate office at an estimated cost of Rs 325 lakh
and working capital requirements.
After this expansion, the company will
have 35 machines for twisting yarn with a capacity of 4,620 MTPA, 30
machines for knitting yarn with 1,980 MTPA and 20 for texturising yean
with capacity of 27,400 MTPA.
Hem Securities Limited is the book running lead manager to the issue.
