Varun Industries IPO : Varun Industries Limited IPO opens on 25th October

Varun Industries proposes to enter the capital market with an Initial public offer of 90,00,000 equity shares at a price of Rs 60 per share aggregating to Rs 54 crore.

The net issue to the public is 65,70,000 equity shares of Rs 10 each at a price of Rs  60 per share for cash a premium of Rs 50 per share. The Net issue would constitute 29.71% of the post issue paid up capital of the company.

About Varun Industries Limited

Varun Industries Limited, earlier known as Varun Continental Limited, was incorporated on March 8, 1996 and exported stainless steel houseware and kitchenware, and gems and jewellery.Currently, the company exports stainless steel houseware and kitchenware, gems and jewellery, and other general merchandise.

For the year ended March 2007, Varund Industries Limited recorded a net profit of Rs 196 million, on an operating income of Rs 7,585 million, as compared with a net profit of Rs 144 million on an operating income of Rs 6,076 million for the year ended March 2006.

Objects of the Varun Industries IPO

• Launching  Company’s products in the domestic markets and Brand building;

• Meeting the margin money requirement for enhanced working capital;

• Gaining the benefits of listing of our Equity Shares.

CRISIL Rating to the IPO : CRISIL has assigned a IPO Grade 1/5 to the proposed initial public offer (IPO) of Varun Industries (VIL). This grade indicates that fundamentals of the issue are poor relative to other listed equity securities in India.

The equity shares issued through the Varun Industries IPO are proposed to be listed on the Bombay Stock Exchange Limited. Book running lead manger to the issue is IDBI Capital Market Services limited and the Registrar for the Varun Industries Limited IPO is Bigshares Services Private Limited.Crisil assigns IPO grade 1/5 to Varun Ind IPO.If you like to read more information regarding the Varun Industuries IPOClick here for the Prospectus of Varun Industries Limited IPO