Readymade Steel India IPO opens for subscription

Bangalore: The steel fabricating firm, Readymade Steel India opens its IPO for subscription on 27th June, 2011 for Rs. 35 crore. The red herring date of this issue is 24 November 2010. It has fixed a price band at Rs. 90-108 a share for the issue, which will close on June 29. Readymade Steel raised more than Rs. 6.5 crore through pre-IPO placement. The company intends to use the proceeds from the issue to enhance capacity at Khopoli and setting up of new facilities near New Delhi and Raipur with steel processing capacity of 50,000 MTPA each.

The book running lead manager to the issue is Arihant Capital Markets. The issue has been graded by CARE and has been assigned a grade of 2/5 indicating below average fundamental. This is a 100 percent Book Built Issue IPO with equity shares of Rs.10. The issue size is Rs. 34.75 crore.

Readymade Steel is used in commercial and residential projects and various infrastructures works like the metro/mono-rail, bridges, highways, power plants. Cut and bent steel is used in columns, beams, foundations and slabs. Readymade Steel has installed capacity of 27000 MTPA for processing of steel used in the construction.

For the nine months period ended on December 2010, it reported profit after tax of Rs. 2.32 crore on total income of Rs. 84.94 crore.