The steel fabricating firm, Readymade Steel India opens its IPO for subscription on June 27th 2011 for cash aggregating up to INR 35 crores. The IPO was subscribed 0.05 times on Day 1.

The retail portion was subscribed 14 per cent as of 5 PM on June 27, 2011 while the non-institutional investor category and Qualified Institutional Buyer segment remained unsubscribed.

The company fixed a price band of INR 90 to INR 108 per share. The minimum bid lot will be 60 equity shares and in multiples of 60 equity shares thereafter. The issue will close on June 29, 2011. The Issue has been graded by CARE and has been assigned a grade of 2/5 indicating below average fundamental.

Mr Nitin Anand head marketing of Equityrush.com said that "Readymade Steel India margins looks very thin & small, and it will find very difficult to service the equity, thus I believe one should simply avoid this issue and stay away from this IPO.”

The Issue is being made through the 100% book building process, wherein 50% of the issue shall be available for Qualified Institutional Buyers, 5% will be available for allocation to Mutual Funds, not less than 15% of the Issue shall be available for allocation on a proportionate basis to Non Institutional Bidders.

Furthermore not less than 35% of the Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders.

(Sourced from ET)