Auto-components maker Precision Camshafts Ltd made a weak stock market debut on Monday with its shares listing 12 per cent below the issue price.
The shares opened for trading at Rs 163 on the Bombay Stock Exchange (BSE) compared with the issue price of Rs 186.
After touching an intraday high of Rs 184.70 and intraday low of Rs 155, shares of the company closed the day 4.7 per cent down at Rs 177.25 against the issue price.
The public issue of the Solapur, Maharashtra-based maker of camshafts closed on January 29. The first IPO of this year was oversubscribed around 92 per cent.
The firm plans to use the proceeds of the IPO, about Rs 410 crore, to set up a machine shop for ductile iron camshafts at the export-oriented unit in Solapur. While the plant is expected to cost Rs 200 crore, the rest of the proceeds would be used for general corporate purposes.
Promoted by Yatin Shah and Suhasini Shah, Precision Camshafts makes about 150 varieties of camshafts for passenger vehicles, tractors, light commercial vehicles and locomotive engine applications at its plants in Solapur. The promoters are first-generation entrepreneurs who started the business of manufacturing critical engine components in 1992.
The company also has two joint ventures. The first, Ningbo Shenglong PCL Camshafts Company Ltd, is for machining of camshafts and the second, PCL Shenglong (Huzhou) Specialised Casting Company Ltd, is for setting up a foundry in China.
Most of its revenue comes from export of camshafts to original equipment manufacturers directly and indirectly.