Somi Conveyor Beltings debuts with 7.57% premium

Somi Conveyor Beltings, a manufacturer of  Rubber Conveyor Belts of various sizes used for industrial applications of material handling in various industries, listed at Rs 37.65 on the BSE against the issue price of Rs 35 at a premium of  7.57%.

At 9.56 am the share was trading at Rs 34 below its issue price on the BSE. The share touched an intraday high of Rs 37.65 and an intraday low of Rs 33.15 .The total traded quantity was 5,41,585 shares.

The issue comprised a contribution by promoters of 14,99,286 equity shares of Rs 10 each at a price of Rs 35 per equity shares aggregating to Rs 524.75 lakh. This leaved a net issue to the public of 47,28,574 equity shares aggregating to Rs 1655 lakh, including an allocation of at least 10% of the net public issue to QIBs.

Ashika Capital Limited is the Lead Manager to the Issue.

The company proposes to utilize the net proceeds of the issue to part finance its Rs 3509 lakh project cost. The expansion and modernization project consists of setting up of new manufacturing unit, purchase of land and building for office use, meeting margin money requirement for enhanced working capital and meet the interest cost during the construction period. The project is proposed to be funded through promoters contribution of Rs 1004 lakhs, IPO proceeds of Rs 1655 lakhs and term loan from Punjab National Bank of Rs 850 lakhs.