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On third day of Nelcast IPO, the issue was 0.05 times subscribed with just 2.05 lakh bids from the total issue size of 43.50 lakh shares.
There were no bids by Qualified Institutional Buyers (QIBs). The Non Institutional Investors bid for 2820 shares.
The retail investors bid for 2.02 lakh shares, from which 1.73 lakh shares were bid at cut off price and 29,430 shares were bid at price.
The issue is priced between Rs 195 – Rs 219 per share and will close on 8 June 2007.
Nelcast mainly caters to commercial vehicle and tractor industries. It plans to deploy the IPO proceeds for expansion and modernisation of its units in Andhra Pradesh and Tamil Nadu, to reach a production capacity of 1,50,000 MT per annum by 2008-09.
Its clientele include Tata Motors, Ashok Leyland, Eicher Motors, Tata Cummins, Mahindra and Mahindra, TAFE, International Tractors and New Holland India. It exports to the US, Europe and Australian markets, where it caters to Arvin Meritor, Volvo, SIGMA and Dobbie Dico Meter.
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