Nelcast Limited enters capital market

Chennai, June 4: Nelcast Limited, a castings and component manufacturing company, today entered the capital market with a public issue of 43,50,000 equity shares to raise Rs 95.27 crore for capacity expansion.

The issue, which opened today, would close on June eight and the price band was fixed at Rs 195 to Rs 219 with a face value of Rs ten each.

Talking to reporters here, Nelcast Promoter P Radhakrishna Reddy said the funds generated from the IPO would be utilised to set up its third plant and increase the capacity of its second plant at Gudur from 1,02,000 Metric tonnes to 1,50,000 MT by September 2008.

The third plant would manufacture Spheroidal Graphite Iron casting to achieve 30 per cent share in total revenue from exports by September 2009. The present export share was 10.2 per cent.

Apart from financing the expansion and modernisation of its two units, the IPO proceeds would also be used to meet the incremental working capital requirements and expand machining facilities to achieve value addition and customer satisfaction.

UNI