VMS Industries debuts with 10% premium

Shares of VMS Industries started the trade at Rs 43.95, up 10% as compared to issue price of Rs 40 a share despite lower subscription during the issue opened.

At 9:37 hours IST, the stock was trading at Rs 46.20, with volume of nearly 30 lakh equity shares on the Bombay Stock Exchange.

VMS Industries is engaged in ship recycling activities, off-shore support business activities. It raised Rs 25.75 crore through the issue.

Issue proceeds are proposed to be used for modernization of ship recycling plot, setting up of corporate office at Ahmedabad and for long-term working capital requirement.

Issue was opened for subscription during May 30-June 2 and was subscribed more than 1.4 times. Reserved portion of retail and non-institutional investors was subscribed 3.67 times and 1.24 times, respectively. However, qualified institutional buyers had not shown any interest in the issue.

Paramount Printpackaging’s IPO gets subscribed 0.22 times on second day

Paramount Printpackaging’s proposed initial public offer (IPO) has been subscribed 0.22 times on its second day. The company has fixed the price band at Rs. 32-35 per share for its IPO. The company has proposed an IPO of 1.3 crore equity shares ofRs. 10 each through 100 per cent book building process, to part finance its expansion plans. The issue has opened on April 20, 2011 and will close on April 25, 2011.

As per the NSE-BSE demand graph available on NSE website at 17.00 pm, it has received 2920500 bids against the issue size of 13094175 shares, 1183500 bids have been received at the cut off price.

The book running lead manager to the issue is Onelife Capital Advisors.

The proceeds of the issue will be used by the company for setting up new facilities for manufacturing of high end duplex board cartons, shippers and printed corrugated box in Gujarat as well as augment the company’s long term working capital requirements.

Paramount Printpackaging caters to over 100 clients in various sectors like FMCG, Pharma, Electricals, Auto ancillary and Food. The company at present has the capacity to convert about 500 tons of paper board every month, which in terms of finished products works out to an average of 20 lakh cartons a day. The company offers a packing solutions consisting of a wide range of cartons, which is complemented by print finishes such as stamping, embossing, complex varnishing and security features.