PPAP IPO gets subscribed 11.09 times( Retail: 20.03 times; H.N.W:9.19 times & QIBs: 5.394 times@upper price band)

New Delhi, 20th December 2007:  PPAP (Precision Pipes and Profiles Company Ltd) received a thumbs up from investors to its initial public offering.  The Bid opened on December 17, 2007, and  closed on December 20, 2007. The Price Band had been fixed between Rs. 140/- and Rs. 150/- per equity share of face value Rs.10/- each.

The over subscription was to the extent of 20.03 times in the case of retail investors, 9.19 times in the case of High Net Worth Individuals, and 5.394 times in the case of Qualified Institutional Investors

UTI securities and NEXGEN Capitals Ltd were the Book Running Lead Managers to the Issue, while Intime Spectrum Registry Limited were the Registrar to the Issue.

 IPO Grading: The Issue had been graded by CRISIL, and had been assigned the IPO Grade 4/5 indicating “above average fundamentals”.

About the company: PPAP was incorporated in 1978 as a partnership firm, and was later converted into a public limited company in October 1995. It is an OEM supplier to the automobile industry and its clients include Maruti Suzuki India Limited, Honda SIEL Cars India Ltd, General Motors India Limited and Toyota Kirloskar Motors Limited. In the white goods industry, it supplies customized profiles to Godrej, Voltas, Videocon and Carrier Refrigerators. Over 90% of its revenues are derived from the automotive components business. Since 1989, PPAP has a technical agreement with Tokai Kogyo Co Ltd. (TKCL), Japan, which is a manufacturer of specialized profiles and extrusions for automobile industry. This agreement helped PPAP in diversifying into specialized products for the automobile industry. This year PPAP has also entered into an Automotive Parts Licensing agreement with Nissen Chemitec Corporation, Japan. Nissen would provide PPAP new product technology in order to manufacture and deliver products in connection with automotive interior parts and related products to Honda SIEL Cars India Limited and its affiliated companies. The company also has entered into an agreement with Power and Data Corporation Pty Ltd., Australia for the manufacturing of electrical outlet systems for supply to the authorized distributors of PDC. CRISIL has an SME 1 rating outstanding on Precision Pipes and Profiles Company Limited, which is valid till 17th May 2008.

PPAP an OEM supplier to Automobile Industry announces IPO; 4/5 CRISIL IPO grading