Gyscoal Alloys Ltd., an Indian maker of stainless steel products, climbed 15 percent in its trading debut in Mumbai after demand exceeded the shares on sale in its initial public offer by 8.5 times.
The stock rose to 81.65 rupees at the 3:30 p.m. close in Mumbai after climbing as much as 58.7 percent to 112.7 rupees in intra-day trading. The Ahmedabad-based company raised 547 million rupees ($12 million) selling 7.7 million shares at 71 rupees each in an IPO earlier this month.
Gyscoal, which manufactures steel angels and products for construction, will use proceeds from the sale to enhance its steel melting capacity to 118,000 metric tons a year from 18,000 tons, according to the company’s offer document.
It posted a profit of 49.2 million rupees on sales of 1.68 billion rupees in the year ended March 31, the share sale document said.
Indian companies have raised about 280 billion rupees ($6.3 billion) from 34 initial public offers in the year that began April, exceeding the amount raised last financial year.
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