Somi Conveyor Beltings ends below issue price

Somi Conveyor Beltings, a manufacturer of  Rubber Conveyor Belts of various sizes used for industrial applications of material handling in various industries, closed at Rs 25.90 on the BSE against its issue price of Rs 35 at a huge discount of 26%.

Its intraday high was at Rs 37.65 and intraday low was at Rs 24.70 . The total traded quantity was 75,87,747 shares.

The share had opened at Rs 37.65 on the BSE against the issue price of Rs 35 at a premium of 7.57%.

The company proposes to utilize the net proceeds of the issue to part finance its Rs 3509 lakh project cost. The expansion and modernization project consists of setting up of new manufacturing unit, purchase of land and building for office use, meeting margin money requirement for enhanced working capital and meet the interest cost during the construction period. The project is proposed to be funded through promoters contribution of Rs 1004 lakhs, IPO proceeds of Rs 1655 lakhs and term loan from Punjab National Bank of Rs 850 lakhs.