Barak Valley Cements IPO : Barak Valley Cements IPO subscribed 116%
Barak Valley Cements (BVCL), a cement manufacturer, received 116% subscription for its initial public offer (IPO) within first 5 hours after opening. The IPO received 6,555,300 bids as against issue size of 5.66 million shares. A total of 92,100 bids were received at the cut off price.
Issue opened today and will close on Nov. 1, 2007. The price band has been fixed between Rs 37 to Rs 42 a share.
Incorporated in 1999, BVCL is engaged in the business of manufacturing of cement. The operations of the company are concentrated in the North Eastern region. The operations include raw material procurement, crushing, blending, grinding and packaging of cement. Its product portfolio includes both Ordinary Portland cement (OPC) and Portland Pozzolana cement (PPC).
BVCL has total cement manufacturing capacity of 760 TPD of which 460 TPD is manufactured in company and 300 TPD in wholly owned subsidiary Cement International. The plant of the company is situated at Karimganj, Assam. The company has three wholly owned subsidiaries. These are Badarpur Energy, Cement International and Meghalaya Minerals & Mines.
Being located in Assam, BVCL is entitled to get various benefits like excise duty exemption, central sales tax/VAT exemption, income-tax exemption, Working capital interest subsidy and Insurance subsidy. The total income for fiscal 2004, 2005, 2006 and 2007 were Rs 384.20 million, Rs 491.66 million, Rs 535.17 million and Rs 743.32 million respectively. The PAT for fiscal 2004, 2005 2006 and 2007 were Rs 60.40 million, Rs 111.15 million, Rs 115.19 million and Rs 143.09 million respectively.
