Nelcast lists at 15% prem, slips into discount

Castings and component manufacturer Nelcast has listed at Rs 252 per share, i.e. 15% premium over its issue price of Rs 219 per share, on the Bombay Stock Exchange (BSE).

It touched a high of Rs 274 a share in morning trades.Currently (1220 hrs) the stock is trading below its issue price at Rs 217 per share amid volumes of 31.20 lakh shares. The stock touched a low of Rs 211 per share.

The company had entered the capital market with a 43.50 lakh share IPO in a price band of Rs 195-219 per share. The issue was subscribed 7.36 times and the company raised Rs 95.27 crore by way of fresh equity.

The Chennai-based company plans to use the proceeds for expansion and modernisation of its units at Gudur in Andhra Pradesh and Ponneri in Tamil Nadu, to reach a production capacity of 1,50,000 MT per annum by 2008-09.