Nissan Copper goes public
The initial public offer of Nissan Copper Ltd. is open. The company has made an offer of its equity shares of Rs. 10 each in a price band of Rs. 33 to Rs. 39. The company was promoted by the Mardia group and the business of the company is manufacturing of copper ingots, coils, wires, stripes, rods, etc. Siemens, Voltas, Gem cooling towers are among the major clients of the company. The capital raised will be used for the working capital requirements of the company and to part finance the expansion of the production unit of the company. The issue closes on 8th December 2006. The company supplies its products to Air condition and refrigeration industry and engineering and gas application industry. With Air condition and engineering space growing at a rapid pace, the company can expect fast growth as well and it has a good clientele. The post issued EPS comes out to about Rs. 4.5 and at the offered price the stock is being issued at a PE multiple of about 8 which is not very expensive as compared to the industry’s average. However, metals are not performing in the commodities markets both at national and international levels and it might have an impact on the stock prices after listing. Very high premium on listing is not expected.