The initial public offering (IPO) of Commercial Engineers & Body Builders Company (CEBBCO) ended with 2.07 times subscription on 5 October 2010. The issue garnered bids for 2.34 crore shares, compared with 1.13 crore shares on offer. The price band for the IPO was Rs 125-127 per share.

The qualified institutional buyers (QIBs) category was subscribed 3.68 times. The non-institutional investors (NII) category, made up of corporates and high-net worth investors, was undersubscribed. The NII category was subscribed just 34%. The retail investors category was also undersubscribed, with just 38% subscription.

A day before the opening of the IPO, CEBBCO allotted 24.43 lakh shares to anchor investors, raking in more than Rs 31 crore. The shares were allotted to the anchor investors at Rs 127 a piece. The anchor investors include JF Eastern Smaller Companies Fund, Legg Mason, Kotak Mutual Fund, Monsoon India Inflection Fund, Phiem Asset Management and Atlantis International Umbrella Fund.

CEBBCO produces vehicle and locomotive bodies for diverse applications for road and railways transportation. It also conducts refurbishment of railway wagons and manufactures components for railway wagons, coaches and locomotives.

The company will utilise around Rs 80.30 crore of the proceeds to set up a unit with a manufacturing capacity of 1,200 wagons and 150 coaches annually. The funds will also be used to pre-pay debt.

Commercial Engineers & Body Builders reported a net profit of Rs 19.20 crore on net sales of Rs 182.86 crore in the year ended March 2010.