Saturday, September 17, 2011

RDB Rasayans IPO

RDB Rasayans, a packaging material manufacturer, has come out with an IPO of 45 lakh equity shares and plans to raise around Rs 32.4 to Rs 35.55 crore through the issue. The company is engaged in the business of manufacturing and selling of FIBC (jumbo bags) and woven sacks and various woven polymer based products like container liners, protective irrigation system, canal liners, etc. These products use fertilizers, cement, polymers, chemicals, textiles, machinery, automobiles and steel industry etc. Its manufacturing facility is located in West Bengal.

RDB Rasayans IPO shall open on 21 September and shall close on 23 September, 2011. The company has fixed a price band of the IPO at Rs 72 to 79 per equity share. Bids can be made for a minimum of 80 equity shares and in multiplies of 80 equity shares thereafter.

The company plans to utilize the proceeds of the IPO for enhancing the manufacturing capacity by 7450 MTPA by establishing the Unit -II for Jumbo Bag Liners.

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

Recommendation:
Brickworks Ratings has given Grade 2 to the IPO indicating below average fundamentals. With so much volatility in stock markets, we would not recommend this IPO to investors.

Subscription:
RDB Rasayans IPO managed to get 1.5 times subscribed at the close of the IPO.

At the close of the IPO,
QII segment got subscribed by 0 times
NII segment got subscribed by 0.75 times
Retail segment got subscribed by 3.96 times

Allotment:
Click here to check RDB Rasayans IPO Allotment Status!

Listing: 
Visit this post again for listing details!