Pradip Overseas IPO subscribed 14 times

15 Mar 2010, 2200 hrs IST, PTI



NEW DELHI: Home linen products maker 

Pradip Overseas' initial public offer (IPO) has received 

good demand from investors and has got subscribed
over 14 times at the end of the issue on Monday.

The total QIB portion was subscribed 8.57 times while the HNI was subscribed 45.35 times, it said said in a statement.

The retail portion was subscribed 10.53 times. "Textiles has been a neglected sector for a very long time. Pradip Overseas has received excellent support in their IPO and the fact that the issue has been subscribed over 14 times is very encouraging," Kejriwal Research and Investments Services founder Arun Kejriwal said.

The company has entered the capital market with an issue size of 1.06 crore shares of Rs 10 each in the price range of Rs 100-110 a piece.

At the upper end of price band, the company would be able to raise up to Rs 116.6 crore, while at the lower end the IPO is valued worth Rs 106 crore. The IPO opened on March 11.

The company intends to use the IPO proceeds to part fund a manufacturing facility in a textile SEZ and partly finance the incremental margin money requirement for working capital.

Anand Rathi Advisors is acting as the sole book running lead manager to the offer.

Pradip Overseas is a textile maker with niche focus on home linen products. The company's existing facility is located at Changodar near Ahmedabad in Gujarat.