Craftsman Automation To Sell Shares At Rs 1,488-1,490 Apiece In IPO

Auto parts maker Craftsman Automation Ltd. will sell shares at Rs 1,488-1,490 apiece in its maiden offer next week, joining the IPO rush that has extended into 2021.

The proposed Rs 824-crore IPO—the first by an auto company in nearly three years—comprises a fresh issue of Rs 150 crore, and an offer-for-sale of up to 45 lakh equity shares by promoters and existing investors, according to its red herring prospectus. The IPO is set to open on March 15 and close on March 17.

  • Srinivasan Ravi: 1,30,640 equity shares
  • Marina 3 (Singapore) Pte Ltd: 15,59,260 equity shares
  • International Finance Corporation: 14,14,050 equity shares
  • K Gomatheswaran: 14,17,500 equity shares

At present, Srinivasan Ravi owns a 52.83% stake in the auto components maker, while IFC, Marina III (Singapore) and K Gomatheswaran hold 14.06%, 15.50% and 7.04% stake, respectively.

Based in Coimbatore, the company is engaged in three business segments—powertrain and other products for the automotive segment, accounting for 47.52% of the overall revenue; aluminium products for the automotive segment, which accounts for 17.27% of the overall revenue; and industrial and engineering products segment, comprising 35.21% of the revenue.

The company in the prospectus said the proceeds from the share sale will be used to repay certain borrowing and for general corporate purposes. Axis Capital, IIFL securities and Link Intime are the book running lead managers to the issue.

For the nine months ended December 2020, Craftsman Automation reported revenue worth Rs 1,022 crore. Its Ebitda margin stood at 28.81%, while profit was at Rs 50 crore. It counts Mahindra & Mahindra Ltd., Royal Enfield, TVS Motor Co., Tata Motors Ltd., Daimler India Commercial vehicles as its clients.

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