Precision IPO oversubscribed on QIB support

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Mumbai | Published: January 30, 2016 12:07:06 AM

The initial public offering (IPO) of Precision Camshafts was subscribed 1.82 times on Friday, the last day, with interest from qualified institutional buyers (QIBs).

The initial public offering (IPO) of Precision Camshafts was subscribed 1.82 times on Friday, the last day, with interest from qualified institutional buyers (QIBs).

The QIB quota was subscribed 2.62 times while high net worth individuals (HNIs) and retail institutional investors too showed interest.

The IPO, which opened on January 27, was priced between the range of Rs 180 and Rs 186 per share.

QIBs comprising foreign funds and domestic institutional investors  have subscribed to a little more than 121 lakh shares against the 46 lakh shares reserved for their category, while HNIs bid for over 24 lakh shares against 78 lakh shares offered to them. Retail investors subscribed to 296 lakh shares against 158 lakh shares reserved for them.

The book running lead managers for the issue are HDFC Bank, IIFL and SBI Capital Markets.

Precision Camshafts aims to raise Rs 410 crore from the public issue. Of this, Rs 240 crore would be a fresh issue while there is an offer for sale (OFS) of up to Rs 170 crore from the existing investors.

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With a share of 8% in the global passenger vehicle camshafts space, the company will use the IPO proceeds for setting up a new machine shop for manufacturing ductile iron camshafts at its export-oriented division.

Although benchmark indices have lost close to 5% during the Calendar 2016 so far, primary markets continue to witness traction. Apart from Precision Camshafts, three more companies are likely to tap primary markets in the next one month.

Teamlease has already announced its IPO plans. The issue will open on February 2 and the company plans to raise more than Rs 350 crore. Parag Milk Foods and L&T Infotech are also planning to tap markets in the next one month.

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