New Delhi, March 4: D-LINK (India) Ltd's bookbuilding portion of initial public offer (IPO) has been fully oversubscribed. According to a market source, fixed price portion of 1.52 lakh shares will be offered at Rs 300, which was also the floor price for the bookbuilding portion.While bookbuilding portion of 13.71 lakh closed on February 27, the fixed price portion will open for subscription on March 14. The issue will close on March 19.
D-Link, a networking equipment producer and trader, has managed to sail through with its bookbuilding offer in a highly volatile market.
Notwithstanding this, the company has decided to charge a premium of Rs 290 for its offer.
At this price, the company will be able to mobilise Rs 45.71 crore from the public issue (15.23 lakh shares). The company is setting up a Rs 55-crore project and hence, it will be left with a short fall of almost Rs 10 crore for meeting the cost. Besides the public issue proceeds, the company has proposed to fund the project through internal accruals.
The Rs 81-crore company is in the process of setting up an additional manufacturing line and software centres in Goa. Around Rs 14.3 crore will be deployed in setting up the facility for networking products, Rs 2 crore for fibre optic products and Rs 29.09 crore for the software division.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
