Montecarlo has filed draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise an estimated Rs 550 crore through an Initial Public Offering (IPO). The IPO comprises fresh issuance of shares worth Rs 450 crore, besides an offer for sale of up to 30 lakh equity stocks by existing shareholder Kanubhai M Patel Trust.
The funds will be utilized towards investment in the company's projects, to meet working capital requirements and for other general corporate purposes. The book running lead managers to the issue are Edelweiss Financial Services, Axis Capital and HDFC Bank.
Montecarlo retails and wholesales automobile parts such as tires, wheels, car audio systems, and accessories based in Hiroshima. The company also has franchised stores.
