Kale Consultants maiden public offer oversubscribed

Pune-based Kale Consultants' maiden public

offering has been oversubscribed more than 50 times, according to initial

estimates. Kale offered 31,87,500 equity shares at a premium of Rs 110 per

share, aggregating Rs 38.25 crore. The application money was fixed at Rs

40 per share for market lots of 50 shares. The issue is lead managed by

DSP Merrill Lynch, while I-Sec was the co-manager to the issue.

The company's shares would be listed on the Mumbai and Pune stock

exchanges. According to market sources, the final tally is expected to be

higher than the initial figure, as in any public offering more than 70 per

cent of the collection comes on the last day of the issue. Apart from

retail investors, many banks and finance companies had also lined up their

resources to finance the issue.

The main objectives of the issue are to finance investment in overseas

subsidiaries and operations, to prepay loans, and to finance the cost of

strengthening the company's infrastructure. While the total fund

requirement was put at Rs 38.25 crore, the whole is being met through the

initial public offering route.