Vaswani Industries IPO : ICRA gives 2 out of 5 Grade

by khalid on 24/03/2011 · 0 comments

Chhattisgarh based Vaswani Industries IPO has got 2 out of 5 by ICRA (rating agency) and this rating/grading is Below Average fundamentals for a steel business company IPO. The grade 2 indicates that the fundamentals of the IPO are Below Average compared to the other listed securities in India. The company is entering into primary market with an Initial Public Offer (IPO) of 1,00,00,000 Equity Shares of Rs 10 each. The premium of the issue will be decided through a 100% Book Building Process. Vaswani Industries Limited (VIL) is recognized as a leader in sponge iron, steel and power manufacturing company.

ICRA takes note of the recent additions in the sponge iron and waste heat recovery based power capacities, which would lead to growth in the turnover and profits in the near to medium term. Nevertheless, the scale of VIL`s operations continues to be at moderate levels. Further, moderate capacity utilization of the sponge iron unit and a largely idle billet capacity, coupled with the moderate profitability of business because of a lack of captive raw material sources depress the overall business returns of VIL.

Stay tuned to BelltheBull Blog for more news on Vaswani Industries IPO !

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