Gravita India, a lead metal manufacturer, is entering capital market with an IPO of 36 lakh equity shares. The company is engaged in the business of manufacturing of lead metal by recycling and smelting process. It has a subsidiary Gravita Exim Limited, which is specialised in providing turnkey solutions and consultancy services on engineering and design for the secondary lead companies. The company aims to raise Rs 43.2 - 45 crore through the IPO.
The IPO will open on November 1 and will close on November 3. The company has fixed a price band of Rs 120 - 125 per share.
Gravita intends to utilise the proceeds of the issue for setting up an additional manufacturing facilities at Jaipur and new facility at Wada, Maharashtra. It will also use the proceeds for investment in overseas ventures. Part of proceeds will also be used for setting up manufacturing facilities at Australia, Belarus, Chile and Mexico.
Keynote Corporate Services Ltd is the book running lead manager to the issue.
We would recommend this IPO to investors for listing gains.
Wednesday, October 27, 2010