On 23 November 2007
Barak Valley Cements will list on exchanges on Friday, 23 November 2007. The stock will be placed in the B1 group of securities on BSE.
The company has the IPO price at the top end of the Rs 37-Rs 42 price band.
At the IPO price of Rs 42, the PE multiple works out to 7, based on the year ended March 2007 EPS of Rs 6.
The Barak Valley Cements IPO had ended on 1 November 2007 with 29.15 times subscription. The IPO received total bids for 16.50 crore shares as against the issue size of 56.60 lakh shares. The qualified institutional buyers (QIBs) category was subscribed 24.17 times. The non institutional investors category, made up of corporates and high-net individuals, was subscribed 25.50 times. The retail investors category was category was subscribed 39.47 times.
Barak Valley plans to use the proceeds to part finance expansion of clinkerisation capacity from present 420 tonne per day (tpd) to 600 tpd; cement grinding capacity from 460 tpd to 750 tpd; invest in wholly owned subsidiary Badarpur Energy; set up 6 MW biomass based power project; and to meet the working capital requirements.
Barak Valley Cements manufactures various grades of Ordinary Portland Cement and Portland Pozzolana Cement, and its main market is the north-east.
The current cement manufacturing capacity of the company, including that of wholly owned subsidiaries, is 760 tpd, which will increase to 1,050 tpd post expansion.
Barak Valley sold around 1.60 lakh tonne of cement in 2006-07 (April-March).
Barak Valley Cements reported a profit after tax of Rs 14.27 crore on sales of Rs 73.70 crore in year ended March 2007.