Precision Camshafts IPO makes a tepid debut, falls 16% intraday against issue price

Precision Camshafts, which completed a Rs 240-crore public offer later last month, made a tepid debut on stock exchanges on Monday. The IPO was listed at Rs 163.10 on BSE, with a discount of over 12 per cent against the issue price of Rs 186.

The stock fell as much as 16.66 per cent to Rs 155.00 against the issue price on the Bombay Stock Exchange (BSE), but pared major losses to settle the day 4.70 per cent lower at Rs 177.25.

The company's share sale programme was the first initial public offering of 2016.

The Solapur, Maharashtra-based Precision Camshafts manufactures and sells over 150 types of camshafts for small and mid-sized passenger vehicle engines to a large number of companies, including some overseas OEMs.

The IPO was subscribed by 1.89 times at a price band of Rs 180-186 per share.

The company had said the proceeds from the issue would be utilised for setting up a machine shop for ductile iron camshafts at its unit at Solapur in Maharashtra, which is being put up for Rs 200 crore, and for other general corporate purposes.

The company also plans to set up two more new machine shops for ductile iron camshafts and assembled camshafts by 2018.