Monday, September 5, 2011

PG Electroplast IPO

PG Electroplast, an electronic manufacturing services provider, is entering capital market with a public issue of 57.45 lakh equity shares of Rs 10 each and plans to raise Rs 109 to Rs 120 crore through the issue. This will constitute 35% of the fully diluted post-issue paid-up share capital. The company manufactures and/or assembles a comprehensive range of consumer electronic components and finished products such as colour television (CTV) sets & components, air conditioners (ACs) sub-assemblies, DVD players and Compact Fluorescent Lamps (CFL) for third parties. As backward integration, it also does plastic injection moulding and manufacture printed circuit boards (PCB) assemblies for CTVs, DVD players and CFL.

PG Electroplast IPO shall open on 7 September, 2011 and shall close on 12 September, 2011. The company has fixed the price band for the issue at Rs 190-210 a share.

PG Electroplast intends to use the proceeds of the IPO for prepayment of the portion of term loan and line of credit facility proposed to be availed by company for the expansion under Phase I; expansion of manufacturing facility at Unit III, Greater Noida; expansion of manufacturing facility at Unit IV, Pune; and for long term working capital requirements.

Almondz Global Securities Limited is the book running lead manager to the issue. Karvy Computershare Pvt Ltd is the registrar.

Recommendation:
CARE has assigned grade 3 to the IPO indicating average fundamentals. We would not recommend this IPO to investors at this time with so much global volatility. Please let us know your recommedation for this IPO as well by leaving a comment on this post!

Subscription:
PG Electroplast managed to get 1.34 times subscribed at the close of the IPO.

At the close of the IPO,
QII segment got subscribed by 0.98 times
NII segment got subscribed by 1.84 times
Retail segment got subscribed by 1.64 times

Allotment:
Click here to check PG Electroplast IPO Allotment Status! The company has fixed the issue price at Rs 210.

Listing:
PG Electroplast IPO listed on 26 September, 2011. The share touched an intra-day low of Rs 176 in the early trade, rallied as much as 131% on the NSE, before closing with gain of 118.60% at Rs 459.05.