Wednesday, June 15, 2011

Rushil Decor IPO

Rushil Decor, a decorative laminated sheets manufacturer, has come out with an IPO of 56,43,750 equity shares of face value Rs 10 each. The issue includes promoter’s contribution of 2,43,750 equity shares and issue to the public of 54 lakh equity shares.

The company manufactures decorative laminated sheets with a network of branches, distributors and dealers across India. Company offers comprehensive engineered interior products including decorative laminate sheets and plain particle boards.

The IPO shall open on June 20 and shall close on June 23, 2011. The company has fixed the price band at Rs 63-72 per share.

The company propose to utilize the proceeds for setting up of medium density fibre board (MDF) plant at Amble Industrial Area, Chikmagalur, Karnataka; and for working capital requirement.

Corporate Strategic Allianz Limited is the book running lead manager and Indbank Merchant Banking Services Ltd is the co-book running lead manager to the issue.

Recommendation:
ICRA has assigned Grade 2 to the IPO indicating below average fundamentals. We would not recommend this IPO to investors at this time.

Subscription:
Rushil Decor IPO got 2.62 times subscribed at the close of the IPO.

At the close of the IPO,
QII segment got subscribed by 0.23 times
NII segment got subscribed by 1.35 times
Retail segment got subscribed by 6.57 times

Allotment:
Click here to check Rushil Decor IPO Allotment Status.

Listing:
Rushil Decor listed on 8th July and had a great listing! The stock gained 65.35% to close at Rs 119.05 on NSE, before touching an intra-day high of Rs 124.05 as issue price of Rs 72 a share.