Friday, October 8, 2010

Gyscoal Alloys IPO - Analysis, Recommendation, Subscription, Allotment, Listing

Analysis:
Gyscoal Alloys, a manufacturer of stainless steel products, has come put with an IPO of 77 lakh equity shares which constitutes 48.65% of the fully diluted post issue paid up capital of the company.

The company manufactures different grades of Stainless Steel products ranging between 200 series to 400 series. Company proposes to increase its melting capacity from existing 18,000 MT per annum by 1,00,000 MT per annum to 1,18,000 MT per annum. It has been exporting a wide range of products to various countries namely Thailand, Philippines, Malaysia, Kenya .

The IPO will open on October 13 and will close on October 15, 2010. The company has fixed a price band of Rs 65 - 71 a share. Bids can be made for a minimum of 90 equity shares and in multiples of 90 shares thereafter.

Issue proceeds are proposed to be used for capital expenditure for enhancing the production capctiy of melting section by 100,000 MT per annum and long term working capital requirements.

Chartered Capital And Investment Limited is the book running lead manager to issue and Link Intime India Private Limited is registrar.

Recommendation:
CARE has assigned Grade 2 to the IPO. We would recommend investors to not invest in this IPO. IPOs have got mixed response from investors at the time of the listing. It is better to wait and watch.

Subscription:
The IPO has been subscibed 8.59 times. At the close of the IPO,
QII segment got subscribed 1.54 times
NII segment got subscribed 33.44 times
Retail segment got subscribed 8.0 times

Allotment:
Click here to check if you have been alloted Gyscoal Alloys shares!

Listing:
Gyscoal Alloys IPO got listed on 27th October. The share saw an intraday high of Rs 112.5 (jump of 58.45% over issue price) but profit booking in second half of trade wiped major gains. The stock closed at Rs 80, a premium of 12.68% over an issue price of Rs 71 a share on the NSE.


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