Varun Industries IPO oversubscribed nearly 40 times

Varun Industries Ltd’s public issue received a buoyant response from almost 1,00,0000 investors, with nearly 40 times over subscription. These are the provisional figures given by the registrar to the issue Big Share Services Pvt. Ltd.

Varun Industries entered the capital market with a public issue of 90,00,000 equity shares of face value Rs. 10 each at a fixed price of Rs. 60 per equity share. The issue closed on October 31, 2007.

Commenting on the response, Mr. Kiran Mehta CMD Varun Industries said, "The overwhelming response to our IPO fills us with joy and gratitude. The level of demand for shares in the IPO is a sign of confidence and indicates a very promising start to Varun’s future as a listed company. The response is from all the categories giving Varun Industries a healthy mix of investors from different segments."

Pursuant to the IPO, the paid up equity of the company would increase to Rs. 22.12 crore from the pre issue equity capital Rs.13.12.crore.

Varun Industries Limited is India’s largest exporter of stainless steel kitchenware and utensils and is now set to enter the retail market with its wide range of top quality exclusive products. The proceeds from this issue will go into launching of the Varun brand in the domestic market.

Source : Equity Bulls

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