Precision Camshafts IPO starts slow

By: | Updated: January 28, 2016 1:37 AM

Precision Camshafts' initial public offering (IPO) opened on a flat note on Wednesday but the issue saw no bids from qualified institutional buyers (QIBs). High net-worth individuals and retail institutional investors purchased relatively fewer shares on day one of its three-day offering.

Precision Camshafts’ initial public offering (IPO) opened on a flat note on Wednesday but the issue saw no bids from qualified institutional buyers (QIBs). High net-worth individuals and retail institutional investors purchased relatively fewer shares on day one of its three-day offering.

QIBs did not seem to subscribe any of the 46 lakh shares reserved to their category. HNIs applied for 11,000 shares out of the 33 lakh shares subscribing to nearly 0.3% shares offered to them. The retail investors bid around 5 lakh shares out of the 78 lakh shares bidding nearly 6.5% of the shares allotted to the group.

The IPO, which was priced in the range of R180-186 per share, saw 5,23,280 shares being sold, out of the 1,58,67,366 shares on offer as per BSE and NSE reports.

The auto camshaft manufacturing company based in Solapur is aiming to raise R410 crore with fresh shares issued worth R240 crore and an offer for sale (OFS) of equities by its promoters worth R170 crore. With over 8% market share in the global passenger vehicle, Camshafts said it would be using the IPO proceeds for setting up a new machine shop for manufacturing ductile iron camshafts at its export oriented division.

The company, which specialises in manufacturing one of the five critical components of the engine and exports to global car makers like General Motors and Ford Motors, reported a 38% annual growth rate between FY11 and FY15. During the same period, revenues grew 17% to Rs 524.9 crore.

The company reported a net profit of Rs 63.60 crore in FY15 while its operating profit margin rose to 28% in FY15 from 16.2% in FY11.

Gr8

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition