Precision Camshafts lists below issue price

Precision Camshafts has listed at Rs 163, a 12% below its issue price of Rs 186 per share on the BSE. On the NSE, the stock opened at Rs 165, an 11% lower than its issue price.

At 10:19, the stock was trading at day’s highest level of Rs 179 after hitting low of Rs 155 post listing on the BSE.

A combined 3.27 million shares have changed hands on the counter on the NSE and BSE.

The company engaged in auto ancillaries business raised Rs 410 crore through initial public offer (IPO), which closed on January 29, was subscribed by 1.89 times at a price band of Rs 180-186 per share.

The company had said the proceeds from the issue would be utilised for setting up a machine shop for ductile iron camshafts at its unit at Solapur in Maharashtra, which is being put up for Rs 200 crore, and for other general corporate purposes. The company also plans to set up two more new machine shops for ductile iron camshafts and assembled camshafts by 2018.

Precision is a global supplier of camshafts, a critical component in automobile engines.

Ford and General Motors are the company’s biggest clients and account for nearly 65% of its revenues.