The Hindu Business Line : Deep Industries to enter market

STOCK SALE: Mr Paras Savla (left), Chairman, Deep Industries Ltd, with Mr. Sanjeev Gupta, MD, Nexgen Capitals Ltd, at a press conference to announce Deep Industries IPO in Mumbai on Wednesday. - Paul Noronha

Mumbai , Aug. 23

Deep Industries Ltd, a Gujarat-based provider of air and gas compression services to oil and gas exploration companies, proposes to enter the capital market on August 29 with an initial public offering of 1.13 crore equity shares of Rs 10 each at a price of Rs 36, aggregating to about Rs 40 crore.

The issue constituting 56.5 per cent of the post-issue paid-up capital of the company closes on September 4.

The company proposes to utilise the funds raised through this issue to part finance its plans for procurement of plant and machinery for business expansion valued at Rs 51.5 crore.

Of the total issue, 28.25 lakh equity shares are reserved for NRIs and FIIs and 11.3 lakh for schedule banks and mutual funds.

A minimum of 31,07,500 equity shares constituting at least 50 per cent of the net offer to the public will be available for allocation on a proportional basis for retail portion and an equal quantity for other than retail portion.

The shares would be listed on the Bombay Stock Exchange.

Deep Industries has been providing compression services to companies such as ONGC, IOC and Gujarat Alkalies and Chemicals Ltd.

Addressing the media on Wednesday, Mr Paras Savla, Chairman, said over the period of time large companies such as ONGC have started outsourcing the task of natural gas compression.

In this growing area, the company wants to provide services and with the opening of the blocks under New Exploration Licensing Policy and Coal Bed Methane there would be a big market for gas compression.

IDBI Capital Market Services Ltd is the lead manager to the issue and Nexgen Capitals Ltd and Keynote Corporate Services Ltd are the co-lead managers. Intime Spectrum Registry Ltd is the registrar and transfer agent.