Bharat Wire issue gets oversubscribed

By: | Updated: March 23, 2016 1:06 AM

The initial public offering (IPO) of wire rope manufacturer, Bharat Wire Ropes's (BWR) was fully subscribed on Tuesday.

The initial public offering (IPO) of wire rope manufacturer, Bharat Wire Ropes’s (BWR) was fully subscribed on Tuesday. The issue, which closed on Tuesday, was bid for 1.21 times as investors subscribed for 211 lakh shares out of the total 175 lakh shares on offer.

The qualified institutional buyers’ (QIB) quota had 124 lakh shares reserved, out of which 125 lakh shares were bid for.

High net-worth individuals (HNIs) quota was oversubscribed twice, as they bid for 50 lakh shares out of the 24 lakh shares reserved for their category.

Retail investors subscribed for 34 lakh shares of the 16 lakh shares or 2.1 times of the total shares on offer for them. Employees, on the other hand, bid for only 86,100 shares out of the 8.75 lakh shares reserved for them.

With a price band of Rs 40- Rs 45, the company aims at raising a sum of Rs 70 crore through the public offer.

The proceeds of the issue will be used for setting up a fully integrated wire rope plant in Jalgaon, Maharashtra and for meeting other general corporate expenses.

The company’s net sales stood at Rs 7.67 crore while total income was at Rs 7.68 crore in FY15.

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