Speciality chemicals maker Galaxy Surfactants' IPO was subscribed a meager 3% by 16:00 IST on third day of bidding for the issue today, 17 May 2011, data on NSE showed. The IPO received bids for 1.58 lakh shares compared with 50.40 lakh shares on offer.

The company has set a price band of Rs 325-340 per share for the IPO. The IPO closes on 18 May 2011 for qualified institutional buyers (QIB) and on 19 May 2011 for non-institutional investors and retail bidders.

At the lower end of price band the company will raise Rs 192.70 crore, while on the upper end it will mop-up Rs 201.60 crore. The issue would constitute 25.07% of the fully diluted post issue paid-up capital of the company.

The company intends to utilise the IPO proceeds towards funding the capital expenditure of its step down subsidiary Galaxy Chemicals (Egypt) S.A.E, through investment in its subsidiary, Galaxy Holdings Mauritius Limited (GHML).

It would also be funding the capital expenditure for setting up a new manufacturing facility at Jhagadia, Gujarat and towards expanding the capacities of its existing manufacturing units at Taloja and Tarapur.