Trans and Rect ends with 56% premium

Trans & Rect ends with 56% premium

It was a fanastic listing for Transformers and Rectifiers (India), one of the major players in the Indian market manufacturing a wide range of transformers. It has ended the day at Rs 726.10, up 56.15% over its offer price of Rs 465. It has touched a high/low of Rs 790 (opening price) and Rs 682.30, respectively on the NSE. The stock slipped below Rs 700 mark due to negative sentiment across the markets but managed to recover and remained above Rs 700 through the day.

It traded with volumes of 37,21,559 shares and turnover was at Rs 271 crore.Jitendra Mamtora, CMD, Transformers and Rectifiers told CNBC-TV18, the business is setting up a Greenfield plant for Transformers. They will start production in the new plant by June 2008.

He expects FY09 sales at Rs 400 crore and profit at Rs 40 crore to be a reasonable estimate. Current order book is at Rs 355 crore, to be executed over 7-8 months. The stock closed at Rs 728 on the BSE and traded with volumes of 26,62,545 shares. It has hit an intraday high/low of Rs 813.75 and Rs 685.20, respectively.

The company had entered capital market with an initial public offering (IPO) of 29,95,000 equity shares of Rs 10 each for cash, at a premium of Rs 455 per equity share. The price band was between Rs 425 to Rs 465 per equity share. The issue was over-subscribed 91.31 times.
The objects of the proposed Issue are to finance the setting up of the proposed greenfield manufacturing facility at Moraiya, near Ahmedabad, Gujarat, for manufacturing transformers, to part-finance incremental working capital requirements.

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Transformers and Rectifiers (India), one of the major players in the Indian market manufacturing a wide range of transformers ranging from power generation, transmission, distribution transformers, industrial transformers and a wide range of speciality transformers, has got fantastic listing after its excellent response to its issue. The stock has listed at Rs 790, a premium of 70% over its offer price of Rs 465 on the NSE and touched a low of Rs 682.30.
Jitendra Mamtora, CMD, Transformers and Rectifiers told CNBC-TV18, the business is setting up a Greenfield plant for Transformers. They will start production in the new plant by June 2008.
He expects FY09 sales at Rs 400 crore and profit at Rs 40 crore to be a reasonable estimate. Current order book is at Rs 355 crore, to be executed over 7-8 months.

Excerpts from CNBC-TV18's exclusive interview with Jitendra Mamotra:

More @ Trans & Rect expect FY09 sales at Rs 400 cr


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