Becoming the latest entrant to the IPO camp, automotive components firm Sandhar Technologies has sought approval from market regulator Sebi to raise Rs 300 crore from an initial share sale.
The funds garnered from the initial public offer (IPO ) will be used for setting up a new manufacturing facility at Hosur in Tamil Nadu, among others things, Sandhar Technologies said in a statement.
The IPO consists of a fresh issue of equity shares aggregating up to Rs 3,000 million and offer for sale of up to 51.15 lakh shares by GTI Capital Beta Pvt Ltd at a face value of Rs 10 each.
The IPO price band will be decided later. The company had yesterday filed the draft red herring prospectus (DRHP) with market regulator Sebi seeking permission for an IPO.
The net proceeds from the issue will be utilised for the establishment of a new manufacturing facility at Hosur, Tamil Nadu, repayment/pre-payment, in full or part, of certain borrowings and general corporate purposes, Sandhar said.
ICICI Securities, IDFC Securities, IIFL Holdings and Jefferies India are the book running lead managers, while Link Intime India is the registrar to the issue.
Promoted by Jayant Davar, Sandhar Technologies Automotive is an OEM component supplier with manufacturing plants in India, Spain, Poland and Mexico.
Since the start of the year, at least 30 companies have already approached Sebi to float their IPOs.
In the same period, the regulator has given approval to 27 to launch their initial share sale plans, some of which had been pending from the previous year.
In addition, IPO papers of 10 firms are under process and the regulator has sought clarifications from them. Moreover, 15 companies have already hit the market so far this year as against just six and three in 2014 and 2013.