Solapur-based Precision Camshafts Ltd is opening its Rs 410-crore initial public offer next week. The company, which manufactures and supplies camshafts (a critical engine component in passenger vehicles), is making a fresh issue of Rs 240 crore and an offer for sale for up to 91,50,000 shares of face value Rs 10 each.
The issue opens on January 27 and closes on January 29. The price band is fixed at Rs 180 to Rs 186 per equity share. The total offer size is between Rs 405-410 crore at the upper and lower limits of the price band. The minimum bid lot is 80 equity shares and thereafter in multiples of 80.
The book running lead managers to the issue are SBI Capital Markets Ltd, HDFC Bank Ltd and IIFL Holdings Ltd. The registrar to the issue is Link Intime India Pvt Ltd. The equity shares are proposed to be listed on the NSE and BSE.
The objective of the net proceeds of the issue is for setting up a machine shop for ductile iron camshafts at the export-oriented unit and for general corporate purposes.
Precision Camshafts supplies over 150 varieties of camshafts for passenger vehicles, tractors, light commercial vehicles and locomotive engine applications. Among its several marquee global original equipment manufacturers are General Motors, Ford Motors, Hyundai, Maruti Suzuki, Tata Motors and Mahindra and Mahindra.
As of March 31, 2015, the company supplied over 58 million units of camshafts in the last ten fiscals to customers in the US, Brazil, the UK, Germany, Austria, Hungary, Russia, South Korea, Spain, Uzbekistan, China and India.
It has two latest manufacturing facilities – an export-oriented unit and a domestic unit – both situated at Solapur, Maharashtra. The company is promoted by the first-generation entrepreneurs Yatin Shah and Suhasini Shah.