The Hindu Business Line : Asian Granito plans IPO

Mumbai, July 19 Asian Granito India Ltd, a manufacturer of vitrified tiles plans, to enter the capital market with an IPO of 70 lakh equity share of Rs 10 each through a 100 per cent book building issue.

The price band has been fixed at Rs 85-102 per equity share.

The company plans to utilise the issue proceeds to set up a wall tile unit as well as for modernisation and expansion of its existing vitrified tile plant at a total investment of Rs 61.37 crore.

The new wall tile plant will have a manufacturing capacity of 9,300 sq m per day (50,000 tonnes a year).

The capacity will be increased from 14,000 sq m a day to 16,000 (1,34,300 tonnes a year).

Expansion is expected to be completed by September 2007 and the new wall tile plant will be commissioned by December 2007.

The issue, which comprises 33.24 per cent of the fully diluted post-issue paid-up capital of the company, opens on July 26 and closes on July 31.

Asian Granito’s subsidiary, Asian Tiles Ltd, is engaged in manufacturing ceramic floor tiles. It has a capacity of 7,000 sq m a day.

SBI Capital Markets Ltd and Enam Financial Consultants Pvt Ltd are the book running lead managers to the issue.