Technocraft IPO Opens on Jan 18, price band Rs 95 to Rs 105

By Staff
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Google Oneindia News

Mumbai, Jan 9 (UNI) Technocraft Industries (India) Ltd is entering the capital market on January 18 with a Public Issue of 83,20,000 Equity Share of Rs ten each through a 100 per cent Book Building Process.

Out of the Issue, 4,20,000 Equity Shares are reserved for employees of the Company and the Net Issue to public 79,000 Equity Shares. The Net issue would contitute 25.06 per cent of the post issue paid up capital of the company.

The price band is Rs 95 to Rs 105 per Equity Share of face value of Rs ten each. The Bid closes on January 23, 2007.

Company Managing Director Mr S K Saraf told reporters,''The company started with the manufacture of high precision and sophisticated drum closures. Subsequently, it acquired a sick unit Maharashtra Steel Tubes Ltd, a manufacturer of steel pipes. In 1997, the company diversified into manufacture of cotton yarn and established a 100 per cent Export Oriental Unit (EOU).'' It has grown to become a diversified company with three divisions- Drum Closures Division, Pipe Division and Yan Division, with manufacturing units based in Murbad, Thane District, he said.

''Technocraft has set up marketing subsidiaries in UK, Hungary, Poland, Germany and Australia to increase its presence in these markets. The company has now embarked on an expansion plan in each of these divisions. In its Drum Closures Division, the company plans to upgrade the plant technologically to reduce manufacturing cost and also set up a new plant with a capacity of nine million sets of drum closures per annum using next generation technology.

The estimated capital expenditure is Rs 19.39 crore for drum closure division; Rs 19.91 crore for pipe division; Rs 60.80 crore for yarn division and Rs 60 crore for power plant. The requiremeent of funds for the expansion projects would be met by the proceeds of the public issue and terms loans from banks and financial institutions, he added.

UNI

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