Gemini Engi-Fab withdraws IPO

Due to poor response from qualified institutional buyers

Gemini Engi-Fab, engaged in manufacturing and salvaging of process equipments through fabrication for various process industries has withdrawn its initial public offering (IPO). The IPO was set to open today, 3 February 2009 and conclude on 6 February 2009.

The company had proposed to offer 5.5 million equity shares of Rs 10 each at Rs 75 to Rs 80 for every share through 100% book building process.

Gemini Engi-Fab is engaged in manufacturing and salvaging of process equipments through fabrication for various process industries, such as cement, dairy, refinery, pharmaceutical, petrochemical, power and chemical.

The company had plans to raise around Rs 45-crore through the issue, which was proposed to be utilized to part-finance the company's expansion plan of setting up a new manufacturing workshop at Umbergaon in Gujarat with a total investment of Rs 49.84-crore.

Rating agency, CARE had assigned "CARE IPO Grade 2" to the IPO indicating below average fundamentals. Rating agencies assign IPO grades on a scale of grade 5 to grade 1, with grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals.