Aster Silicates IPO subscribed nearly 3 times

Gets bids for 1.28 crore shares

The initial public offer of Aster Silicates, which manufactures sodium silicate, was subscribed 2.7 times by 15:00 IST on Monday, 28 June 2010. The IPO got bids for 1.28 crore shares compared with 47.41 lakh shares on offer.



The price band for the IPO is Rs 112-118 per share. The company is raising this money for expansion of its Bharuch manufacturing facilities by adding a 300-tonne facility to manufacture sodium silicate and additional working capital requirements. After expansion, the total capacity will increase to 450 tonnes per day from current 150 tonnes per day. The project is to be completed by January 2011.

Sodium silicate is an intermediate product for the personal care industry. Sodium silicate finds its applications in toothpaste, gels, washing powders, and soaps.

The company clocked net profit of Rs 4.42 crore on sales of Rs 61.87 crore for the year ended March 2010.