VA Tech Wabag attracts 30% premium

Settles at Rs 1,709.40 on BSE

Shares of VA Tech Wabag settled at Rs 1709.40 on BSE, a 30.49% premium over the initial public offering price of Rs 1310. The stock debuted at Rs 1655, a 26.34% premium over the initial public offering (IPO) price. The stock hit a high of Rs 1806.60 and low of Rs 1651.10. The counter clocked a volume of 52.19 lakh shares on BSE.



VA Tech Wabag's initial public offering (IPO) ended on 27 September 2010 with 36.22 times subscription. The IPO received bids for 11.33 crore shares compared with 31.28 lakh shares on offer.

The non-institutional investors category was subscribed a staggering 100.98 times. The qualified institutional buyers and retail investors category were subscribed 36.13 times and 8.55 times respectively.

VA Tech Wabag had fixed a price band of Rs 1,230 to Rs 1,310 a share for its Rs 475 crore IPO. Earlier, the company received commitment of Rs 70.90 crore from anchor investors for 5.41 lakh equity shares at Rs 1310 a share.

Rating agency ICRA had 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, the Middle East, North Africa, South East Asia, as well as Central and Eastern Europe.

On a consolidated basis, VA Tech Wabag reported a net profit of Rs 44.74 crore on sales of Rs 1223.74 crore for the year ended March 2010.