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Plastene IPO Gets Muted Response On Day 1

The initial public offerings or IPO of Plastene received meagre response (0.02 times) on the first day of issue.

Total bids received for 1,57,050 shares, compared to the issue size of 92.55 lakh shares at 16.00 hrs IST on Wednesday, as per NSE website.

The company has offered 92,55,290 equity shares of Rs.10 each with a price band of Rs.81-84 apiece. The issue comprises of employees' reservation of upto 55,290 equity shares. The issue will close on May 15.

The company aims to raise around Rs.77.74 crore through this issue, by diluting 25.89 percent stake in the company.

Plastene plans to utilize the IPO proceeds to expand manufacturing facilities of jumbo bags and BoPP woven sacks at its existing units at Nani Chirai in the Kutch district of Gujarat and at Rajpur in the Mehsana district of Gujarat. It also intends to venture into manufacturing of new product called as block bottom valve bags used for packaging of cement, pharma food grains etc.

Motilal Oswal Investment Advisors Pvt. Ltd. is the book running lead manager to the issue.

by RTTNews Staff Writer

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