26.09.2006

ACE IPO oversubscribed

Indian manufacturer Action Construction Equipment, ACE listed at Rs 200 on the Bombay Stock Exchange against its issue price of Rs 130.

The company's IPO shares were over subscribed by more than 34 percent resulting in the issue price of shares being fixed at Rs 130 per share, the upper end of the price band of Rs 110-130 (£1.25 - £1.47).

ACE had received a good response from institutional investors with the qualified institutional buyers allocation being over subscribed by more than 37 times, while the allocation reserved for the non-institutional investors was over subscribed 40 times.

The retail portion of the Action IPO also saw demand of over 29 times on the last day of the offer.

The company proposes to invest part of the net proceeds of the issue in a new plant for manufacturing loaders, higher capacity tower cranes and construction equipment along with expansion and modernisation of the existing capacities and facilities.

Earlier this year, ACE formed a joint manufacturing venture with Italian aerial lift producer Airo Tigieffe to produce models from Airo's self propelled aerial lift range. Airo has a wide range of electric and diesel scissor lifts and booms.

Formed about 10 years ago Action Construction Equipment started manufacturing mobile cranes under the 'ACE' brand name. Its head office is based at Faridabad, which is 45 kms outside New Delhi. The company now sells its equipment through an extensive dealer network covering the whole of India.