BS TransComm soars on debut

Settles at Rs 378.50 on BSE

BS TransComm settled at Rs 378.50 on BSE, a 52.6% premium over the initial public offer price of Rs 248. The stock debuted at Rs 251, a 1.2% premium over the initial public offer (IPO) price. The stock hit a high of Rs 399 and a low of Rs 247.80. A total of 2.29 crore shares were traded on the counter on BSE



The initial public offer (IPO) of the Hyderabad-based manufacturer of towers for telecommunication and power sectors, BS Transcomm, was subscribed 1.1 times and garnered bids for 84.13 lakh shares compared with 79.79 lakh shares on offer.

The qualified institutional buyers category was subscribed 0.52 times, non-institutional investors category was subscribed 3.16 times and retail individual investors category was subscribed 1.04 times.

BS Transcomm had extended the IPO closure data and reduced price band for the IPO due to poor investor response to the issue. The IPO closing date was extended to 13 October 2010 from its earlier scheduled closure on 8 October 2010. The price band was revised to Rs 248-257 per share from Rs 257-266 per share earlier.

The company offered 76.79 lakh shares in the IPO which had opened for bidding on 6 October 2010.

BS Transcomm plans to deploy the proceeds of the IPO for capacity expansion plans and for working capital purposes. The company has a manufacturing capacity of 1,20,000 tonnes per annum (tpa) with a backward integrated structural steel plant supporting the raw material required for tower manufacturing. It is currently undertaking a project to expand the manufacturing capacity to 2,40,000 tpa.

The company reported consolidated net profit of Rs 25 crore on sales of Rs 516.69 crore for the yea