gundeep
21-10-2007, 07:14 PM
SVPCL Limited IPO will open for subscription on October 22, 2007. SVPCL Limited is a leading indian paper products manufacturing company. The price band for SVPCL Limited IPO has been fixed at Rs. 40 to 45 per share. SVPCL Limited has stated in the DRHP that it will use the proceeds from the IPO to increase capacity. The SVPCL IPO closes for subscription on October 26, 2007. BOB Capital Markets Limited and UTI Securities Limited are the lead managers for the SVPCL Limited IPO. The IPO issue size of the SVPCL IPO is just around 35 crores. Since its such a small IPO, SVPCL IPO is likely to get heavily oversubscribed. The shares of SVPCL Limited are proposed to be listed on both NSE and BSE. For SVPCL Limited IPO subscription details, SVPCL IPO allotment status, SVPCL IPO listing date and refund details visit this blog regularly.
The present capacity of three plants located at Hyderabad, Vijayawada and Viszag is 19,500 TPA which is operating at about 65% utilization. Inspite of this, the capacity is being expanded to 34,000 TPA with a capex of Rs 37.10 crore which is largely financed by proposed issue.Post issue, equity of the company may rise to Rs 19.30 crore, and since, the existing capacity is already underutilized, we are skeptical about how much would get added by new capacity additions, to the topline of the company. Working capital requirement of the industry is also very high, which would be an obstacle in improvement of the turnover
The present capacity of three plants located at Hyderabad, Vijayawada and Viszag is 19,500 TPA which is operating at about 65% utilization. Inspite of this, the capacity is being expanded to 34,000 TPA with a capex of Rs 37.10 crore which is largely financed by proposed issue.Post issue, equity of the company may rise to Rs 19.30 crore, and since, the existing capacity is already underutilized, we are skeptical about how much would get added by new capacity additions, to the topline of the company. Working capital requirement of the industry is also very high, which would be an obstacle in improvement of the turnover