The initial public offer (IPO) of TD Power Systems was subscribed 2.92 times by 17:00 IST on final day of bidding for the IPO today, 26 August 2011, data on NSE showed. The IPO got bids for 2.2 crore shares, compared with 75.62 lakh shares on offer.

The price band for the IPO was fixed at Rs 256 to Rs 261 per equity share of face value Rs 10 each.

TD Power Systems would use the IPO proceeds to finance the expansion of the existing manufacturing plant in Dabaspet in Bangalore, and for the construction of a project office in Bangalore. The company also proposes to utilise part of the IPO proceeds to repay debt, fund working capital requirements and for other general company purposes.

Ratings firm Credit Analysis & Research (CARE) had assigned grade 4/5 to the issue, indicating above average fundamentals.

TD Power is one of the leading manufacturers of alternate current (AC) generators of 1-52 MW output capacity range. Apart from AC Generators, the company also manufacturers motors.

TD Power Systems raised Rs 33.39 crore by placing 13.04 lakh equity shares to five anchor investors at Rs 256 each on Tuesday, 23 August 2011. Among the five anchor investors Smallcap World Fund was issued 6.33 lakh shares, or 48.54% of the total shares allocated to anchor investors, IDFC Premier Equity Fund (3.90 lakh shares or 29.94%), American Fund Insurance (2.26 lakh shares or 17.33%) and Baring India and Ironwood Investment (27,275 shares or 2.09%).