M and B Switchgears soars on debut

Ends at Rs 317.55 on BSE

Shares of M and B Switchgears settled at Rs 317.55 on BSE, a sharp premium of 70.73% over the initial public offer price of Rs 186.

The stock debuted at Rs 180, a discount of 3.22% to the initial public offer (IPO) price. The stock hit a high of Rs 356 and low of Rs 118.65. On BSE, 2.65 crore shares were traded on the counter.

M and B Switchgears' initial public offering (IPO) was subscribed 1.57 times and got bids for 78.43 lakh shares. The IPO remained open for bidding between 28 September 2011 and 5 October 2011. The price band for the IPO was Rs 180-186 per share.



Retail individual investors category was subscribed 2.35 times followed by non institutional investors (1.56 times) and qualified institutional buyers (1.03 times).

M and B Switchgears is engaged in manufacture of transformers up to 25 mega-volt-ampere (MVA) capacity at 132 kiloVolt (KV) class and automatic voltage controllers. The company plans to diversify into solar power generation by setting up a 2 megawatts (MW) grid connected solar power project in Madhya Pradesh.

The company intends to use funds for setting up new grid connected 4 MW-peak (MWp) solar photovoltaic power plant at Gagorni village, Rajghar district in Madhya Pradesh.

M and B Switchgears' net profit fell 16.30% to Rs 0.77 crore on 3.95% decline in net sales to Rs 34.49 crore in the year ended March 2011 over the year ended March 2010.