The initial public offer (IPO) of home linen products maker Pradip Overseas Ltd got fully subscribed within hours of opening today, on the back of strong demand from investors.
The Rs 116 crore issue received bids for 1.16 crore shares out of 1.06 crore equities on offer for public till 1300 hrs, getting subscribed 1.10 times, as per the latest data available with the National Stock Exchange (NSE).
The company has entered the capital markets with an issue size of 1.06 crore shares of Rs 10 each in the price range of Rs 100-110 a piece.
At the upper end of price band, the company would be able to raise up to Rs 116.6 crore, while at the lower end the IPO is valued worth Rs 106 crore. The IPO closes on March 15.
The public issue is based on 100 per cent book-building process. The company intends to use the IPO proceeds to part finance a manufacturing facility in a textile SEZ and partly fund the incremental margin money requirement for working capital.
Anand Rathi Advisors is acting as the sole book running lead manager to the offer.
Pradip Overseas is a textile maker with niche focus on home linen products. The company's existing facility is located at Changodar near Ahmedabad in Gujarat.
