Vaswani Industries IPO price band fixed at Rs.45 to Rs.49

Vaswani Industries Limited (VIL) is entering the capital market with a Public Issue of 1,00,00,000 Equity Shares of Rs.10 each for cash in the Price Band of Rs.45 to Rs.49 per Equity Share. The 100% Book Built issue will constitute 42.57% of the post issue paid-up equity capital of the Company.

The Public Issue will Open on Friday, 29th April 2011 and Close on Tuesday, 3rd May 2011.

Vaswani Industries Ltd. has been promoted by Ravi Vaswani, Pramod Vaswani and Yashwant Vaswani. The company belongs to Vaswani group which has interests in iron and steel since the past two decades.

The company is presently engaged in the integrated business of manufacturing sponge iron, steel billets and ingots and power generation. The manufacturing facilities are located at Sondra Village, around 14 kms from Raipur Railway Station.

The Company has installed capacity of 3x100 TPD of sponge iron and 36000 MT of steel billets and ingots. The company also generates 11.5 MW of power. The surplus power is being sold to private power companies and the State Electricity Board.

For the year ended 31st March 2010, the company posted a Profit After Tax of Rs.3.68 crores on a Total Income of Rs.90.85 crores. For the 7 month period ended 31st October 2010, on a Total Income of Rs.68.78 crores, the Company posted a Profit After Tax of Rs.2.69 crores.

The issue proceeds would be utilized for pre-payment of term loan, long term working requirements, general corporate purposes and meeting the issue expenses.

The Equity Shares of the company are proposed to be listed on BSE and NSE. Ashika Capital Ltd. is the Book Running Lead Managers to the Issue.

Source : Equity Bulls

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