Technofab Engineering IPO opens for subscription


Mumbai: The initial public offering of Technofab Engineering has opened for subscription. The offering of 29.9 lakh shares will close on July 2. A price band for the issue is at 230-240 a share. Technofab Engineering, which specialises in engineering, procurement and construction services, aims to raise 68.77 crore at the lower end of the price band and 71.76 crore at the upper. The company would have a market capitalization of about 250 crore on listing. The issue constitutes 28.50 percent of the post issue paid-up equity capital and the net issue 28.03 percent of the post issue paid-up equity capital of the company. Fifty percent of the net issue is reserved for qualified institutional buyers, 15 percent for non-institutional bidders and 35 percent for retail bidders. Technofab Engineering is engaged in the business of providing Engineering Procurement and Construction (EPC) services, and executing a wide range of Balance-of-Plant (BoP) and electro-mechanical projects on a complete turnkey basis. Funds will be raised to meet the company's long-term working capital requirement of 30 crore and to finance procurement of construction equipment for 16.24 crore. The company has seen a huge growth in revenues with total turnover rising from 61.61 crores in March 2007 to 149.57 crores in March 2009 and 200.48 crores in March 2010. The profit after tax for March 2007 was 78.64 lakhs and in March 2010 the net profit was 19.09 crores. The shares of Technofab Engineering Limited will be listed on the BSE and NSE. Collins Stewart Inga is the sole book running lead manager to the issue and Link Intime India is the registrar to the issue.