The IPO will open on 9 May, 2012 and will close on 15 May, 2012. The company has announced a price band of Rs 81-84 per share. Investors can apply for minimum 75 equity shares and in multiples of 75 shares thereafter.
Plastene intends to expand manufacturing facilities of jumbo bags and BoPP woven sacks at its existing units at Nani Chirai in the Kutch district of Gujarat and at Rajpur in the Mehsana district of Gujarat. The company also intends to venture into manufacturing of new product called as block bottom valve bags used for packaging of cement, pharma food grains etc.
Plastene India's equity shares are proposed to be listed on the BSE and NSE. Motilal Oswal Investment Advisors Pvt Ltd is the book running lead manager to the issue.
Recommendation:ICRA has assigned grade 3 to the IPO indicating average fundamentals. Given the turmoil in the global stock markets, we would recommend staying away from this IPO at this time.
Subscription:Plastene India Limited IPO got 0.29 times subscribed only at the time of the close of the IPO. Due to the poor response, the IPO has been withdrawn.
At the close of the IPO,
QII segment did not get subscribed at all
NII segment got subscribed 1.76 times
Retail segment got subscribed 0.05 times
Employee reservation segment got subscribed by 0.75 times