Specialty chemicals maker Galaxy Surfactants, which is planning to raise around Rs 200 crore through initial public offer (IPO) has been subscribed by a meager 3% on third day of bidding i.e., May 17, 2011 for the issue. The IPO received bids for 1.58 lakh shares compared with 50.40 lakh shares on offer.
The company has set a price band of Rs 325-340 per share for the IPO. The IPO closes on May 18, 2011 for qualified institutional buyers (QIB) and on May 19, 2011 for non-institutional investors and retail bidders. The issue would constitute 25.07% of the fully diluted post issue paid-up capital of the company.
The company intends to utilize the IPO proceeds towards funding the capital expenditure of its step down subsidiary Galaxy Chemicals (Egypt) S.A.E, through investment in its subsidiary, Galaxy Holdings Mauritius Limited (GHML). It would also be funding the capital expenditure for setting up a new manufacturing facility at Jhagadia, Gujarat and towards expanding the capacities of its existing manufacturing units at Taloja and Tarapur.
Galaxy Surfactants is an established player in surfactants having application in personal care line with more than 60% market share in product ranging from personal care to chemicals.
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