Saturday, June 21, 2008

Avon Weighting IPO subscribed 45 times

MUMBAI - The initial public offer of Avon Weighted Systems has got subscribed 45 times the issue, despite the subdued market sentiments.

The fixed price IPO of the company engaged in business of selling weighing systems received strong response from investors, a company release said.

The issue price was fixed at the par value itself at Rs 10 per share aggregating to Rs 13.73 crore.

Of the total issue of 1.37 crore shares, promoters' contribution was worth Rs 3.89 crore, leaving a net offer to the public aggregating Rs 9.83 crore.

Marketmen said that over-subscription of the issue is significant amid the current fall in the stock market. The issue which had opened on June 9, closed on June 12.

The company plans to utilise the issue proceeds to part finance the funds required for setting up a new facility for manufacturing of a range of weighing systems, open four showrooms for display and sales its weighing systems in Mumbai, Delhi, Chennai and Hyderabad and to purchase additional premises in Mumbai.

The proposed manufacturing plant would be set up at Baddi in Himachal Pradesh with technical assistance from Tanita Corporation of Japan.