PME Power Solutions, a Transformer-maker, has filed a draft red herring Prospectus (DRHP) with market regulator Securities Exchange Board of India (SEBI) for initial public offer (IPO). The company expects to raise up to Rs 300 crore through issue of 114,23,226 equity shares having face value of Rs 10 each.
The book running lead managers for the issue are Edelweiss Capital and Imperial Corporate Finance and Services; Link Intime India is the registrar to the issue.
PME Power Solutions intends to use the issue proceeds to fund the setting up of manufacturing facilities at Moradabad, in Uttar Pradesh, aimed at enhancing transformer production capability upto 315 MVA at 400 KV class, repay existing borrowings.
The company manufactures transformers up to 63 MVA at 132 KV class. These transformers are designed for a range of applications in generation, transmission and distribution of electrical energy besides being used for industrial applications, power plants, mining projects and arc furnaces. As of June 30, 2011, the order book is approximately Rs 3,299.68 million which consists of Rs 377.47 million of orders for transformers and Rs 2,922.22 million of orders pertaining to Engineering, Procurement and Construction contracts.
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