Power equipment maker TD Power Systems’ initial public offering (IPO) was subscribed 2.92 times by 5:30 pm on Friday, according to information available on the BSE and the NSE websites. TD Power was looking to raise Rs 227 crore, at a price band of Rs 256-Rs 261 per share.
Although latest information was not available at the time of filing this article, qualified institutional buyers (QIBs) had subscribed most of the issue till Thursday (August 25).
TD Power had earlier roped in Baring India Private Equity Fund and Sequoia Capital India as anchor investors for the issue, besides IDFC Premier Equity Fund, Smallcap World Fund, Inc. and American Fund Insurance Series Global Small Capitalisation Fund.
The company has reported 31.3 per cent compound annual growth rate (CAGR) in total income to Rs 863.7 crore for FY11, with profit after tax growing 14.2 per cent to Rs 56.7 crore.
TD Power Systems manufacturers AC generators, with output capacity in the range of 1-52 MW, for prime movers, such as steam turbine generators and horizontal hydro generators. It also executes turbine generator island projects for steam turbine power plants, with output capacity up to 52 MW, using a Japanese turbine combined with its own generator.
Through its subsidiary DF Power Systems, TD Power is also in the business of EPC, executing boiler-turbine generator (BTG) island projects and the balance of plant (BOP) portion for steam turbine power plants with output capacity between 52 MW and 150 MW. Its current order book stands at Rs 1,094.69 crore.
The funds raised from the IPO will be used by TD Power for expansion of its manufacturing plant (Rs 94.6 crore), construction of project office in Bangalore (Rs 28.9 crore), debt repayment (Rs 30.2 crore), meeting working capital requirements and other general corporate purposes.
Enam Securities is the global co-ordinator while Antique Capital Markets and Equirus Capital are the book running lead managers to the issue.