Craftsman Automation Rs 823.7 crore IPO opens on March 15

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Diversified engineering company, Craftsman Automation is set to raise Rs 823.7 crores through an initial public offering (IPO). The issue opens for subscription on March 15 and closes on March 17.

The Coimbatore-based engineering major has fixed a price band of Rs 1,488-1,490 per share. Investors can bid for a minimum of 10 equity shares and in multiples, thereafter, translating to a minimum bidding amount of Rs 14,900 at the higher end of the price band. A retail investor can at max apply for 13 lots or 130 shares for 1,93,700.

The IPO is a mix of an offer for sale (OFS) and a fresh issue of shares. The company will raise Rs 150 crore by issuing 10,06,711 equity share of Rs 5 face value. The offer for sale consists of 45,21,450 equity shares offered by existing shareholders.

Promoter Srinivasan Ravi will sell 1,30,640 equity shares, and investors Marina III (Singapore) Pte Limited and International Finance Corporation will divest 15,59,260 equity shares and 14,14,050 equity shares, respectively, through the OFS route. Individual shareholder K Gomatheswaran will also sell 14,17,500 equity shares via OFS.

Proceeds from the fresh issue will be used to repay some of the company’s borrowings. As of September, the company had total secured borrowings long & short term of Rs 963.48 crore.

Incorporated in 1986 & headquartered in Coimbatore, Craftsman Automation is diversified engineering engaged in three business segments – powertrain and other products for the automotive segment; aluminium products for the automotive segment; and industrial and engineering products segment.

The company has long-term relationships with the likes of Daimler India, Tata Motors, Tata Cummins, Mahindra & Mahindra, Simpson & Co, TAFE Motors and Tractors, Escorts, Ashok Leyland, Perkins, Mitsubishi Heavy Industries, TVS Motor, Royal Enfield, John Deere and JCB India.

The issue is likely to finalize the basis of allotment by March 22, and the initialization of funds will take place by March 23. While the credit of equity shares to depository accounts of allottee will be done on March 24. The engineering company is expected to make its stock market debut on March 25, 2021.

The book operating lead managers to the issue are Axis Capital and IIFL Securities, whilst the registrar to the issue is Link Intime India.

Craftsman Automation will be the 12th issue of the calendar year 2021, after Indian Railway Finance Corporation, Indigo Paints, Home First Finance Company, Stove Kraft, Brookfield India REIT, Nureca, RailTel Corporation of India, Heranba Industries and MTAR Technologies, Easy Trip Planners which opened for subscription on March 8, whereas Anupam Rasayan IPO will open on March 12.