Prakash Steelage to come up with IPO on August 5

Bangalore: Prakash Steelage (PSL) has come up with a public issue of 62.5 lakh equity shares of Rs. 10 each. The company has fixed the price band between Rs. 100 and Rs. 110 per equity share. The issue will constitute 35.71 percent of the post Issue paid-up capital.

The issue will open on August 5, 2010, for all bidders and close on August 9, 2010, for QIB bidders and on August 10, 2010, for non-QIB bidders.

PSL is engaged in the manufacturing of seamless & welded stainless steel pipes, tubes and U-tubes. The company has expected to raise Rs. 62.50 crore (lower end of the price band) and Rs. 68.75 crore (upper end of the price band).

The objects of the issue are to raise resources to part finance its expansion plan at the Company's existing manufacturing facility at Umbergaon, Gujarat and also to meet the additional working capital requirement.

The book running lead manager to the Issue is Keynote Corporate Services. The Syndicate members to the IPO are Keynote Capitals, ENAM Securities and SMC Global Securities.

Prakash Steelage carries out its production through its two state-of-the-art production units situated at Silvasa and Umbergaon (Gujarat). It has been exporting its products to several MNCs in more than 40 countries across the globe.

The company clocked a turnover of Rs. 437.10 crore for the year ended March 31, 2010, with EBIDTA of Rs. 45.14 crore and profit after tax of Rs. 17.82 crore.