Fatpipe Networks IPO subscribed 32% on day one

Gets bids for 19.31 lakh shares
The initial public offer (IPO) of the Chennai-based IT company Fatpipe Networks India was subscribed 0.32 times on day one. The IPO got bids for 19.31 lakh shares compared with 59.75 lakh shares on offer.
The company is offering shares in the price band of Rs 82-85 per share in the ongoing IPO which remains open between 7 and 9 June 2010.
Fatpipe Networks India manufactures and markets router clustering products, which improves reliability, security and bandwidth management application of wide area networks (WAN).

The issue proceeds will be used for expanding the product line with enhanced research and development activities, specifically for development of new product-lines; for establishing 16 new marketing offices across the globe including additional offices in the USA; for strategic acquisition of business/company and for margin money for working capital requirement.
For the nine months ended December 2009, Fatpipe Networks India had posted net profit of Rs 5.2 crore on net sales of Rs 45.89 crore.