M and B Switchgears', a transformer manufacturing company, initial public offer (IPO) got dismal response on second day of issue and was subscribed 0.01 times till 1600 hrs. As per the data available with the NSE, total bid of 62190 shares were received for the issue of 5000000 shares,while 53490 bids were received at the cut-off price.
The company has fixed price band Rs 180 to Rs 186. The 100% book building issue opened on September 28 and will close on October 05, 2011. D&A Financial Services is the book running lead manager and Bigshare Services is the registrar to the issue.
M and B Switchgears intends to utilize the issue proceeds to set up new grid connected 4 MWp solar photovoltaic power plant at Village Gagorni, Dist. Rajghar, Madhya Pradesh and to meet general corporate purpose.
The company is engaged in manufacturing of distribution transformers, power transformers, furnace transformers and special purpose transformers. M and B Switchgears commenced its operations in 1976 as proprietorship concern and was converted into public limited company in 2010. Thus, it is engaged in the said business since past 30 years and has been consistently strengthening its position through continuous modernisation and expansion and by acquiring latest and sophisticated technology and processes.
M and B Switchgears began with manufacturing of 550 transformers per annum, the capacity has grown gradually 5,109 transformers per annum. It commenced with capacity of 75,000 Kilo Volt Amperes (KVA) of transformer per month. At present its annual aggregate capacity is 9,00,000 KVA per annum.
The company is currently engaged in setting up a power project to generate 2 MWp through Solar PV Cells. The project is being executed at a plot area of 4.06 hectare at Survey No 13/1/1. Village Gagorni, Tehl and Distt. Rajghar, MP.