Sanghvi Forging debuts at Rs. 88 per share on NSE

Posted By: Religare
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Sanghvi Forging debuts at Rs. 88 per share on NSE
Among the new players in domestic stock indices, Sanghvi Forging and Engineering Ltd. made a positive debut with premium of over 3 percent on the National Stock Exchange on Monday. The shares of the company, which were offered at a price band of Rs. 80 - 85 per share during its initial public offering (IPO) period, jumped to Rs. 88 a piece almost in a jiffy initially.

The stock then started trading at Rs. 89.90 per share thereby indicating 5.67 percent above the issue price. However, the stock finally closed the first trading day at Rs 113.

At the Bombay Stock Exchange or BSE index, Sanghvi Forging opened at Rs. 85 but was soon found to be trading at Rs. 90.10 per share and closed at Rs 111.75.

Sanghvi Forging had hit the capital market with its initial public offer Rs. 36.9 crore and A part of the funding raised through these issues would be involved in construction of the 15,000 MTPA open die forging unit to create proof- machined products like flanged shafts, stepped shafts, gear blanks, blocks, bars and hollows and other forging items.

Associated sources claim that the net profit margin of the company for the previous year stands at 10 percent and around 20-25 percent growth is estimated for this year as well. The idea of launching this offer is to raise funds for upcoming projects streamlined for May 2012.

Sanghvi Forging and Engineering Ltd. is into manufacturing and exporting the forging products which are not for automotive sectors. Their focus lay on forging for segments like power equipments, ship building, defence and oil & gas equipments. Since a good amount of profit can be seen coming from these areas, the company expects a huge growth in the coming fiscal.

Story first published: Tuesday, May 24, 2011, 9:30 [IST]
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