Craftsman Automation files papers for IPO

New Delhi: Auto component maker Craftsman Automation has filed preliminary papers with capital markets watchdog Sebi to float an initial share-sale.

The IPO comprises a fresh issue of equity shares aggregating up to Rs 150 crore and an offer for sale of up to 45,21,450 shares by promoter and existing shareholders, draft red herring prospectus filed with Sebi showed. Those offloading shares in the offer-for-sale are Srinivasan Ravi, K Gomatheswaran, Marina III (Singapore) Pte Ltd and International Finance Corporation (IFC). Currently, IFC and Marina hold 14.06 per cent and 15.50 per cent stake, respectively, in the company.

Besides, Srinivasan Ravi owns 52.83 per cent stake and K Gomatheswaran has 7.04 per cent shareholding. Net proceeds of the issue will be utilised 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 of the equity shares on the stock exchanges. Axis Capital and IIFL Securities have been appointed as book running lead managers to the issue.

Shares of the company are proposed to be listed on BSE and NSE. Earlier, the auto component maker had filed draft papers with Sebi in June 2018 and had received the regulator's clearance for launching the IPO. However, the company couldn't launch the initial share-sale due to unfavourable market condition, market experts said.

Headquartered in Coimbatore, the company has satellite units across India namely Pune, Faridabad, Pithampur, Jamshedpur, Bengaluru, Sriperumbudur and Chennai.