Tuesday, June 26, 2012

VKS Projects IPO

VKS Projects, an engineering procurement and construction company, is entering the capital markets with an initial public offer of Rs 55 crore. The company is engaged in the business of undertaking EPC contracts of CS/SS/alloy steel turnkey piping, civil land development, industrial / commercial infra projects, structural fabrication and erection of equipments, fire fighting projects and commissioning of chemical plants for various industries.

The IPO shall open on 29 June and shall close on 4 July, 2012. The company has fixed a price band of Rs 55 to Rs 60 per share.

The company intends to utilize proceeds of the IPO to enhance capital equipments base in order to increase on operational and financial efficiencies w.r.t project executions and also improve pre-qualification status. It also plans to expand operating activities by opening design studio/office and training centers at various locations across India.

Aryaman Financial Services Ltd is the book running lead manager to the issue. Big Share Services Pvt. Ltd. is the registrar of the issue.

Recommendation:

CRISIL has assigned Grade 1 to the IPO indicating poor fundamentals. We would not recommend investors to invest in this IPO at this time.

Subscription:

VKS Projects IPO barely managed to get fully subscribed before the close of the IPO.

At the close of the IPO,
QII segment got subscribed 1.15 times
NII segment got subscribed 0.38 times
Retail segment got subscribed 1.13 times

Allotment:

The company has fixed the price issue of the IPO at Rs 55 per share. Check the VKS Projects IPO Allotment status here!

Listing:

VKS Projects IPO got listed on 18 July, 2012. The stock hit a intraday low of Rs 53.05 in early trade, hit an intraday high of Rs 56 in late trade, before closing at Rs 55.60, with a rise of just 1% over issue price.


0 comments:

Post a Comment