The Hindu Business Line : Nitin Fire Protection plans Rs 64-cr public issue

MR NITIN SHAH (right), Chairman and Managing Director, Nitin Fire Protection Industries, with Mr Rahul Shah, Executive Director, at a press conference in Mumbai on Monday to announce the company's IPO. - Paul Noronha

Mumbai May 7 Nitin Fire Protection Industries Ltd proposes to raise Rs 64 crore with an initial public offering of 33.90 lakh equity shares.

The price band for the issue has been fixed at Rs 171-Rs 190 per share.

Of the 33.90 lakh shares on offer, 1.5 lakh shares have been reserved for employees. The net issue will constitute 25.71 per cent of the post-issue paid-up capital of the company.

The issue opens on May 15 and closes on May 18.

The proceeds of the issue will be utilised to set up a high-pressure seamless cylinder plant at the Visakhapatnam Special Economic Zone through investment in the company's wholly owned subsidiary, Nitin Cylinders Ltd.

The total cost of the project is Rs 1,180.82 crore and will be funded through the IPO and internal accruals.

The plant, which is being set up in two phases, will have the capacity to manufacture 5 lakh CNG cylinders per annum.

The first phase of the project, with a capacity to produce 2.5 lakh CNG cylinders, has started production from this month.

During 2006-07, the company recorded a total consolidated income of Rs 101.71 crore and a net profit of Rs 9.99 crore as against the total income of Rs 72.61 crore and a net profit of Rs 6.53 crore in the previous fiscal.

Karvy Investor Services Ltd and UTI Securities Ltd are the book running lead managers to the issue.