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Gujarat-based VMS Industries Ltd, engaged in ship-recycling and offshore activities, will enter the capital market with an IPO next week to raise Rs 25.75 crore through a 100 per cent book-building process for its forthcoming plans.
The price-band for the issue, opening on May 30 and closing on June 2, will be Rs 36-40 an equity share of Rs 10 each. Ashika Capital Ltd is the sole book running lead manager to the issue and Cameo Corporate Services Ltd is the registrar. The issue has been graded by ICRA Ltd and assigned the “IPO Grade 1”, indicating poor fundamentals.
The company proposes to utilise the net proceeds to part finance modernisation of ship recycling platform (Rs 5.58 crore) at Bhavnagar, meeting long-term working capital requirements (Rs 17.40 crore) and for setting up of corporate office at Ahmedabad (Rs 1.10 crore), Mr Manoj Jain, Managing Director, told reporters here today.
The equity shares are proposed to be listed on the Bombay Stock Exchange Ltd only. The issue is among the first to come out with mandatory use of ASBA facility by non-retail investors.
VMS Industries' turnover for the nine-month period ended December 31, 2010, was Rs 49.88 crore compared with Rs 29.11 crore for full year of 2009-10 and its net profit was Rs 2.50 crore, against Rs 2.60 crore in FY11.
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