VA Tech Wabag IPO subscribed 15.20 times

Gets bids for 4.75 crore shares

VA Tech Wabag's initial public offering (IPO) was subscribed 15.20 times on day three today, 24 September 2010. The IPO received bids for 4.75 crore shares compared with 31.28 lakh shares on offer. Bidding for institutional investors ended today, 24 September 2010 while bidding for non-institutional and retail buyers closes on 27 September 2010. The IPO had opened for subscription on 22 September 2010.



The company has fixed a price band of Rs 1230 to Rs 1310 a share for its Rs 475 crore IPO. VA Tech Wabag had received commitment of Rs 70.9 crore from anchor investors as against allotment of 5.41 lakh equity shares at Rs 1310 a share.

Rating agency ICRA has assigned IPO Grade 4 to the company's IPO indicating above average fundamentals. The company will use the resources mopped from the IPO for expanding the activities, including acquisitions.

VA Tech Wabag is a multinational player in the water treatment industry with strong presence in developing countries including India, China, Middle East, North Africa, South East Asia, Middle East as well as Central and Eastern Europe.

The company's consolidated net profit rose 28.3% to Rs 44.74 crore on 7.98% rise in sales to Rs 1123.74 crore in the full year ended March 2010 over the full year ended March 2009.