Aishwarya Telecom rings loud on debut

Settles at Rs 90.85 on BSE, a sharp premium of 159.57% over its issue price of Rs 35

The counter saw high volumes of 8.27 crore shares on BSE

Aishwarya Telecom settled at Rs 90.85 on BSE, a sharp premium of 159.57% over its issue price of Rs 35 on its debut today.

Earlier today, the Aishwarya Telecom stock debuted at Rs 50.10 on BSE, a premium of 43.14% over its issue price of Rs 35. The stock hit a high of Rs 93 and a low of Rs 50.10 so far during the day.

Aishwarya Telecom had fixed the issue price at Rs 35 per equity share for its with initial public offering of 40 lakh shares. The initial public offer of Aishwarya Telecom was subscribed around 20 times. The company will use the proceeds of the issue to increase its manufacturing capabilities and infrastructure, fund research projects and for general corporate purposes.

Aishwarya Telecom mainly supplies its products to major telecom operators. The company also manufactures products for telephone service providers, defence sector, railways, telecom equipment companies and cable TV operators. It also exports cable fault locators to France, Taiwan, Czech Republic and Dubai.

The company had reported 28.90% rise in net profit to Rs 3.03 crore on 32.10% increase in net sales to Rs 22 crore in the year ended March 2007 over the year ended March 2006.