Saturday, July 05, 2008

Weak debut for Archidply Industries

Archidply Industries was trading at Rs 52.80 at 11:50 IST on BSE, a discount of 28.65% over the initial public offer price of Rs 74.

The BSE Sensex was up 116.32 points or 0.89% to 13,209.44

Archidply Industries, engaged in the business of wooden interior products, debuted at Rs 74.55 (also its high so far during the day) on BSE, at a marginal premium of 0.74% over the issue price. However the stock was unable to sustain at higher levels and tumbled to touch a low of 51.10.

The counter clocked high volumes of 61.01 lakh shares on the BSE.

Archidply Industries initial public offer (IPO) was subscribed 1.52 times. The IPO received bids for 1 crore shares, as against 66.15 lakh shares on offer. The IPO opened on 11 June 2008 and closed on 17 June 2008. The price band for the IPO was Rs 70 to Rs 80 per share

Archidply Industries manufactures comprehensive engineered interior products which include plywood, block board, plain and pre laminated particle board, decorative laminates and decorative veneers.

The proceeds of the initial pubilc offer (IPO) will be utilised for setting up a new manufacturing facility at Chintamani in Karnataka. The Bangalore-based company would set up the new facility to manufacture plain particle board, pre-laminated board and decorative plywood. Besides, the funds raised would also be used to finance setting up a new manufacturing facility for medium density fibreboard in Uttarakhand

The company reported 157.26% jump in net profit to Rs 14.87 crore on 52.68% rise in net sales to Rs 143.55 crore in the year ended March 2008 over the year ended March 2007.