Metalman Auto has received the Securities and Exchange Board of India’s (SEBI's) approval to float 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.
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. Axis Capital, ICICI Securities and Motilal Oswal Investment Advisors are the book-running lead managers to the public issue.
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.
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