Shares of Technofab Engineering (TEL) settled at Rs 295.65 on BSE, a premium of 23.19% over the initial public offer price of Rs 240 per share.

The stock debuted at Rs 265, a 10.42% premium over the initial public offer (IPO) price. On BSE, 94.95 lakh shares were traded on the counter. The stock hit a high of Rs 307 and low of Rs 265.

The company had priced the IPO at the top end of Rs 230-240 per share price band. TEL had raised Rs 71.76 crore through an initial public offer (IPO) recently. The IPO was open for bidding between 29 June 2010 and 2 July 2010. The IPO got bids for 3.81 crore shares and ended with 12.78 times oversubscription.

The qualified institutional buyers (QIB) category was subscribed 4.28 times. Foreign institutional investors (FIIs) put in bids for 31.6 lakh shares compared with 14.7 lakh shares reserved for the QIB category as a whole. The non-institutional investors' category which comprises of subscription from corporates and high networth individuals, was subscribed a massive 48.85 times. The retail investors' category was subscribed 10.03 times.

The company plans to use the funds raised through the IPO to meet the long-term working capital requirement, to finance procurement of construction equipment, setting up of maintenance and storage facilities and setting up of a training centre for employees.

TEL provides engineering, procurement and construction (EPC) services, and executes a wide range of Balance-of-Plant (BoP) and electro-mechanical projects on a complete turnkey basis.

The company had unexecuted order book of Rs 533.74 crore at end March 2010, which is about 2.7 times its revenue of Rs 200.37 crore for the year ended March 2010 (FY 2010), providing strong revenue visibility.

TEL's net profit jumped 63% to Rs 19.09 crore on 34% increase in sales to Rs 200.37 crore in the year ended March 2010 over the year ended March 2009.