Veto Switchgears IPO gets 70 per cent subscription on second day

The initial public offer of Veto Switchgears and Cables Ltd received 70 per cent subscription on the second day of the issue today.

The Rs 25 crore-IPO received bids for 36.69 lakh shares against 52.08 lakh shares on offer by 1700 hrs, as per data available with the National Stock Exchange.

The category reserved for qualified institutional buyers (QIBs) was subscribed 37 per cent, while the non institutional investors portion received 1.02 times subscription. The shares reserved for retail investors got 41 per cent subscription, the data showed.

The company, which is engaged in the manufacture and sale of wires, cables and electrical accessories, has fixed the issue price band at Rs 48-50 per share to raise Rs 25 crore through IPO.

The equity shares are proposed to be listed on the SME Platform of the NSE - EMERGE. The issue will close tomorrow. Veto intends to use issue proceeds for modernisation of existing facility at Haridwar in Uttarakhand with an outlay of Rs 4.7 crore, financing incremental long-term working capital requirement with a cost of Rs 15.80 crore and enhancement of brand through advertising and other brand-building activities with Rs 2 crore.

The company manufactures industrial cables, strand cables to telephone and co-axial wires, general switches, modular switches, ceiling fans, rechargeable fans, compact fluorescent lamps and other electrical accessories at its Haridwar plant.

The book running lead manager to the issue is Keynote Corporate Services and co-book running lead manager is Indian Overseas Bank.