As the stock market is gaining momentum by the day, there is no denying the fact that more and more companies are lured to launch their IPOs on the bourses.

And the latest to enter this list is Commercial Engineers and Body Builders, a designer and manufacturer of vehicle bodies, who is now all set to hit the capital markets. It is to be mentioned here that the initial public offering of the company will open on September 30.

For the record, it has fixed a price band of Rs. 125-127 a share and the company is planning to collect up to Rs. 1.72 billion ($35.8 million) through the IPO.

For the investors, the issue will be closing on the 5th of October and the company plans to use a substantial chunk of the proceeds to set up a new manufacturing unit. According to the plans disclosed by the company, it has a plan to set up a unit with a manufacturing capacity of 1,200 wagons and 150 coaches annually.

Apart from setting a new plant, the company will also be looking at an option of fresh issue for capital expenditure for the railway project, prepayment of identified loan facilities and general corporate purposes.