Shares of Lead Reclaim and Rubber Products were trading at 10:41am IST on the BSE at Rs 27.70, a premium of 10.80% compared to the issue price of Rs 25.
The scrip was quoted at Rs 27.50, representing a 10% premium over the initial public offering (IPO) price.
So far the scrip has hit a high of Rs 28.50 and a low of Rs 27.15. Over 8.04 lakh shares of the company have changed hands in the store so far.
The Lead Reclaim and Rubber Products IPO received bids for 04/14/18,000 shares versus the issuance of 19,50,000 shares offered. The issue was subscribed 3.28 times.
The offering opened for bidding on February 9, 2023 and closed on December 13, 2022. The issue price has been set at Rs 25 per share. The shares were listed on NSE’s SME platform.
The IPO involved a new issue of 19,50,000 shares with a par value of Rs 10 each for cash at a price of Rs 25 per share for a total of Rs 4.87 billion. Of these, 1.02.000 shares will be reserved for subscription by market makers for the issue.
The net issue comprised 18,48,000 shares. The issue and the net issue will represent 26.56% and 25.17%, respectively, of the Company’s paid-up share capital after the issue. The pre-IPO shareholding of Promoter and Promoter Group was 86.48%.
The company proposes to use the net proceeds to fund working capital needs; Purchase of equipment and machines to expand the production facility; and general corporate purposes.
Lead Reclaim and Rubber Products is engaged in the manufacture of waste rubber, rubber powder and rubber crumbs. The manufacturing facility is located in Pithai, Gujarat. The company currently sells its products to companies in the automotive industry, distributors and dealers. It also sells its products to foreign buyers in Sri Lanka, Argentina, Turkey, China, etc. through trade exporters.
The company’s operating income was Rs.490 crore and profit after tax was Rs.035 crore for the six months ended 30 September 2022.
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