Technofab Engineering Ltd. rose as much as 28.3 percent in its Mumbai trading debut after demand at its initial public offer this month exceeded the stock on sale by 12.8 times.
The stock, which started trading at 272 rupees, rose 22 percent to 292.70 rupees as of 3:15 p.m. local time. It earlier touched 307.8 rupees. The company raised 718 million rupees ($15 million) selling 2.99 million shares at 240 rupees each.
The New Delhi-based company will use the funds to meet working capital needs and help complete 41 pending projects, Chairman and Managing Director Avinash Gupta told reporters in Mumbai today.
Technofab, which counts NTPC Ltd., GAIL India Ltd., Bharat Heavy Electricals Ltd. and Nuclear Power Corp. of India among its clients, has orders worth 7 billion rupees and expects to win contracts valued at a further 3 billion rupees this year as the government increases spending on infrastructure, Gupta said.
He estimates a profit of about 280 million rupees on 3 billion rupees in revenue for the year to March 31, compared with a net income of 190.9 million rupees on 2 billion rupees in sales last financial year.