Transformers and Rectifiers fixes IPO price at Rs 465 per equity share

Mumbai: Transformers and Rectifiers (India) Limited, (the “Company”), one of the major players in the Indian market manufacturing a wide range of transformers ranging from power generation, transmission, distribution transformers, industrial transformers and a wide range of speciality transformers, has determined the Issue Price at Rs. 465 per equity share ( at the upper end of the Price Band) for its initial public offering (“IPO”) of 29,95,000 equity shares of Rs. 10 each for cash, at a premium of Rs 455 per equity share, decided through a 100% Book-Building Process (the “Issue”). The Price Band was fixed between Rs 425 to Rs 465 per equity share.

The Issue opened for subscription on December 7, 2007 and closed on December 12, 2007. According to the preliminary bidding data received from the National Stock Exchange of India Limited website (www.nseindia.com), the Issue was over-subscribed 91.31 times. The Qualified Institutional Bidders (“QIBs”) portion was over-subscribed by approximately around 111 times; the Non Institutional Bidders portion was over-subscribed by approximately 122 times; the Retail Bidder portion was over-subscribed by approximately around 58 times. The Issue got bids for 27.35 crore shares as against 29.95 lakh shares on offer.

The equity shares of the Company are proposed to be listed on the Bombay Stock Exchange Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE”).

The objects of the proposed Issue are to finance the setting up of the proposed greenfield manufacturing facility at Moraiya, near Ahmedabad, Gujarat, for manufacturing transformers, to part-finance incremental working capital requirements.

The Company manufactures a wide range of transformers while focusing on quality, timely delivery and customization. It has developed its products based on its in-house design and engineering capabilities, and is perhaps one of the few players to have developed this wide range of products without any third party technical collaboration or assistance. The Company manufactures transformers upto 220 kV Class, having an installed capacity of 7,200 MVA transformers per annum. It currently operates through two manufacturing units, located at Changodar, near Ahmedabad and Odhav, in Ahmedabad, both in Gujarat. Its Changodar facility is ISO 9001-2000 compliant, and the ISO 9001-2000 certification has been renewed till September 1, 2010. It developed a strong domestic marketing network, and has marketing personnel in Chennai, Delhi, Kolkata, Pune and Mumbai. It has catered to a wide spectrum of transformer users in various industries such as petrochemicals, oil refining, cement, paper and pulp, pharmaceuticals, automobiles, steel, alloy plant, power plant, railways, mining, minerals, among others. Its key customers include utilities and power transmission companies. It has exported transformers to countries such as England, Canada, the United Arab Emirates, South Africa, Saudi Arabia and Indonesia.

Enam Securities Private Limited is the sole Book Running Lead Manager (“BRLM”) to the Issue.

Source : Equity Bulls

Keywords