Though the market saw severe cuts on Monday, GNA Axles had a fairly good first day first show on the bourses. The auto component maker ended with 18 percent gains at Rs 245.05 from its issue price of Rs 207 per share. The stock touched intraday high of Rs 260 and an intraday low of Rs 242.20 on the BSE. As per data on NSE, it has 15,20,614 traded shares.
The Jalandhar-based company made stock market debut at Rs 252 per share, up 22 percent over its issue price.
The 63 lakh equity shares public issue was oversubscribed 54.88 times. Reserved portion of qualified institutional investors was oversubscribed 17.18 times and non-institutional investors 217.47 times. The reserved category of retail investors also oversubscribed 11.84 times. I
The company intends to utilise the net issue proceeds for purchase of plant & machinery (Rs 80 crore); working capital requirements (Rs 35 crore); and general corporate purposes. The company has witnessed a topline CAGR of 13 percent over the period FY13-16.
In the same period, EBITDA has registered a decent CAGR of 23 percent to Rs 82.8 crore in FY16. PAT has seen impressive CAGR of 75 percent over FY13-16. In FY 2016, its domestic sales and export sales constituted 45.29 percent and 54.71 percent of revenue.
Established in 1993, the company is engaged in manufacturing and supplying a diverse range of rear axle shafts, other shafts and spindles for the on-highway segment (commercial vehicles and other transport vehicles) and the off-highway segment (agricultural tractors and machinery, forestry and construction equipments etc).
Its customers primarily include original equipment manufacturers such as Mahindra & Mahindra, John Deere, Tractors and Farm Equipment, and tier-1 suppliers to OEMs such as Automotive Axles, Meritor HVS AB and Dana. The company has two manufacturing facilities both located in Punjab with a total annual capacity of 2.30 million rear axle shafts, 0.4 million other shafts and 0.3 million spindles.
Posted by Nasrin Sultana
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