Proceeds from the fresh issue to the tune of Rs 25 crore will be used.
Auto components maker Metalman Auto Ltd has filed draft papers with capital markets regulator Sebi to mobilise funds through an initial public offering (IPO).
The proposed IPO is a combination of a fresh issue of equity shares worth Rs 350 crore and an offer for sale (OFS) of up to 1.26 crore shares by its promoters, according to the draft red herring prospectus (DRHP).
Proceeds from the fresh issue to the tune of Rs 25 crore will be used to part financing the capital expenditure towards procurement of plant and machinery at Pithampur manufacturing unit 2 in Madhya Pradesh.
Additionally, Rs 240 crore will be used for payment of debt, besides, a portion of funds will be used for general corporate purposes, draft papers filed on Monday showed.
Founded in 1986, Metalman Auto is a one-stop shop for sheet metal and tubular fabrication, metal finishing and assembly of components for OEMs in the automotive and non-automotive sectors.
The company is primarily focused on manufacturing metal components for two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, agri-vehicles and off-highway vehicles.
Metalman Auto has nine manufacturing units across five states in India, strategically located in proximity to its OEM customers. It serves various customers, including Bajaj, Hero MotoCorp, Honda and TVS.
Axis Capital Limited, ICICI Securities Limited and Motilal Oswal Investment Advisors Limited are the book-running lead managers to the public issue.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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