The Hindu : Business : AIA Engineering to tap market

Online edition of India's National Newspaper
Thursday, Nov 10, 2005

Business

Business

AIA Engineering to tap market

Corporate Reporter

CHENNAI: AIA Engineering, a niche player in the value-added high chrome metallurgy segment catering to cement, mining and thermal power industries, is entering the capital market with its initial public offering of 47 lakh equity shares of Rs. 10 each through the book-building process. It has fixed the price band at Rs. 275-315 per share. If fully subscribed the company would raise Rs. 129 crore at the lower-end and Rs. 148 crore at the upper-end of the price band.

The issue will remain open from November 17 to 22. Addressing presspersons here on Wednesday, Bhadresh Shah, Managing Director, said the proceeds of the issue would be used for part financing the expansion plans by putting up a new manufacturing facility at Changodar in Ahmedabad.

The company has a capacity to produce 30,000 tonnes of mill internals such as impact, abrasion and corrosion resistant critical components of ball-mills and vertical mills. The capacity will be increased to 76,000 tonnes. The company has been exporting 46 per cent of its production particularly to Europe and North America.

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