Bang Overseas

Abstract:

Bang Overseas IPO was launched with a view of enhancing the retail section of the company. The IPO was introduced in the capital markets in January, 2008. The following write up reflects certain features of the Bang Overseas IPO.

Operating in two distinct segments, namely, manufacture of garments as well as trading textiles, Bang Overseas recently launched IPO in the capital market. Designing fabrics is also taken care of by the company.

Details of the Bang Overseas IPO:

The company had introduced as many as 3,500,000 equity shares. The equity shares were Rs 10 each ( cash at price). The Issue, which opened with a cent percent Book building process opened on 28th January, 2008. However, the equity shares closed on 31st January, 2008. The price band fixed by the company ranged between Rs 200 to Rs 207.

The Net equity shares were about 3,400,000 in number. Each share was Rs10. In case of the employees who were eligible, about 1,00,000 equity shares were provided at a premium. The total number of bids received by Bang Overseas IPO for 35 lac equity shares were 43.55 lac shares.

QIB or Qualifying Institutional Buyers:

The total number of equity shares subscribed for the qualifying institutional buyers was 1.14 times.

Retail buyers:

For the retail buyers, 1.17 times of equity shares were assigned.

Non Institutional investors:

About 1.80 times was subscribed to the non institutional buyers.

As of 20th February, 2008:

The equity shares listed on the BSE or Bombay Stock Exchange opened at Rs 207, similar to the price of IPO. The highest point reached by the stock was Rs 260. The lowest was Rs 201.20. This was as per reports of the stock market on 20th February, 2008.

Bang Overseas IPO grading:

CARE grades IPO on a scale ranging between 5 and 1. If the issuing company possesses "strong fundamentals", CARE gives it a Grade 5 rating. On the other hand, if the "fundamentals" of the issuing company is not so strong, CARE grades 1 to the company. In case of Bang Overseas IPO, CARE rated it as Grade 2.

Objectives of the IPO:

The main objectives of the Bang Overseas IPO is aimed at improving its retail segment of the business.