Craftsman Automation IPO ends with decent subscription

Published on Mar 18, 2021 10:52

The initial public offer (IPO) of Craftsman Automation received bids for 1.47 crore shares as against 38.69 lakh shares on offer, according to the stock exchange. The issue was subscribed 3.81 times.

The qualified institutional buyers (QIBs) category was subscribed 5.21 times. The retail individual investors category was subscribed 3.43 times. The non-institutional investors category was subscribed 2.84 times.

The issue opened for bidding on Monday, 15 March 2021, and closed on Wednesday, 17 March 2021. The price band for the IPO was set at Rs 1488-1490 per share.

The issue comprised of a fresh issue of Rs 150 crore and an offer for sale of 45,21,450 equity shares by existing shareholders.

Those offloading shares in the offer-for-sale are Srinivasan Ravi, K Gomatheswaran, Marina III (Singapore) and International Finance Corporation (IFC). Currently, IFC and Marina hold 14.06% and 15.50% stake, respectively, in the company. Besides, Srinivasan Ravi owns a 52.83% stake and K Gomatheswaran has a 7.04% holding.

Ahead of the IPO, the company on 12 March 2021 finalised allocation of 16,58,447 shares to anchor investors at Rs 1490 per share, aggregating to Rs 247.10 crore.

The company proposes to utilise the net proceeds of the issue for repayment or pre-payment of certain borrowings availed of by the company and for general corporate purposes. In addition, the company expects to receive the benefits of listing the equity shares on the stock exchanges.

Craftsman Automation is a diversified engineering company with vertically integrated manufacturing capabilities, engaged in three business segments, namely automotive-powertrain and others, automotive-aluminum products, and industrial and engineering. The company owns and operates 12 strategically located manufacturing facilities across 7 cities in India. It has strong and well-established relationships with several marquee domestic and global OEMs as well as component manufacturers.

On a consolidated basis, the company reported a net profit of Rs 50.66 crore and revenue of Rs 1,022.79 crore in the nine months ended on 31 December 2020.