Precision Pipes and Profiles Company, a Delhi-based OEM supplier to the automobile industry, is open for subscription with an initial public offering (IPO) of 50-lakh shares of face value of Rs 10 each at a price band of Rs 140-150 per equity share. The bids will close on December 20.
The company is hoping to raise around Rs 75 crore from the issue to fund its expansion initiatives.
Post the issue, the promoter and promoter group holding would be reduced to between 62.69 and 64.29 per cent.
The company is currently in the process of increasing its production capabilities from 4.75 million kg to 9.14 million kg by 2008-09. It is also setting up a new plant for manufacturing of auto components and also a new plant for electrical outlet system products for Power and Data Corporation Pty Ltd, Australia.
The total investment is expected to be around Rs 106 crore, out of which Rs 75 crore will be from the IPO, Rs 25 crore through term loans and the remaining Rs 6 crore from internal accruals.
The company for the financial year ended March 31, 2007, had a turnover of Rs 109.28 crore compared with Rs 80.35 crore posted during the same period of the previous year.
The net profit for the last financial year was at Rs 13.87 crore compared with Rs 7.99 crore recorded for the financial year ended March 31, 2006.
UTI Securities Limited and Nexgen Capitals Limited are book running lead managers while Intime Spectrum Registry is registrar to the issue.
Source: Moneycontrol.com
Monday, December 17, 2007
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