Experts say apply for Transformers & Rectifiers IPO

Transformers and Rectifiers (India), one of the major players in the Indian market manufacturing a wide range of transformers ranging from power generation, transmission, distribution transformers, industrial transformers and a wide range of speciality transformers, has opened for subscription with an initial public offering of 29,95,000 equity shares of Rs 10 each for cash at a premium to be decided through a 100% book-building process.

The issue will close on December 12, 2007. The price band is between Rs 425 and Rs 465 per equity share.

The equity shares are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.

The issue includes a reservation of 150,000 equity shares for eligible employees and the net issue to the public will be 28,45,000 equity shares. The issue will constitute 23.17% of the fully diluted post-issue paid-up capital of the company and the net issue will constitute 22.01% of the fully diluted post issue paid-up capital of the company.

The objects of the proposed Issue are to finance the setting up of the proposed greenfield manufacturing facility at Moraiya, near Ahmedabad, Gujarat, for manufacturing transformers and to part-finance incremental working capital requirements.

The company manufactures transformers upto 220 kV Class, having an installed capacity of 7,200 MVA transformers per annum. It currently operates through two manufacturing units, located at Changodar, near Ahmedabad and Odhav, in Ahmedabad, both in Gujarat.

Enam Securities Private Limited is the sole book running lead manager to the issue.

Source : MoneyControl