TD Power Systems attracts 7.34% premium

Settles at Rs 274.80 on BSE

Shares of TD Power Systems settled at Rs 274.80 on BSE, a premium of 7.34% over the initial public offer price of Rs 256. The stock debuted at Rs 251.60, a discount of 1.72% to the initial public offer (IPO) price. The stock hit a high of Rs 308.75 and low of Rs 242. On BSE, 1.16 crore shares were traded on the counter.



The company had priced the initial public offer (IPO) at the lower end of the Rs 256 to Rs 261 per share price band. The IPO was subscribed 2.92 times. The IPO got bids for 2.20 crore shares, compared with 75.62 lakh shares on offer. The IPO remained open between 24 and 26 August 2011.

The qualified institutional buyers (QIB) category was subscribed 6.52 times while the non institutional investors and retail individual investors categories were subscribed 0.38 times each.

TD Power is one of the leading manufacturers of alternate current (AC) generators of 1-52 MW output capacity range. Apart from AC generators, the company also manufacturers motors.

TD Power Systems plans to use the IPO proceeds to finance the expansion of the existing manufacturing plant in Dabaspet in Bangalore, and for the construction of a project office in Bangalore. The company also proposes to utilise part of the IPO proceeds to repay debt, fund working capital requirements and for other general company purposes.

TD Power Systems raised Rs 33.39 crore by placing 13.04 lakh equity shares to five anchor investors at Rs 256 each on 23 August 2011. Among the five anchor investors, Smallcap World Fund was issued 6.33 lakh shares, or 48.54% of the total shares allocated to anchor investors.

On a consolidated basis, TD Power Systems' net profit rose 40.35% to Rs 56.66 crore on 17% increase in net sales to Rs 863.73 crore in the year ended March 2011 over the year ended March 2010.