John Energy, backed by ace investor Rakesh Jhunjhunwala, has filed draft papers with markets regulator Sebi to raise an estimated Rs 3.5 billion (Rs 350 crore) through an initial public offering.
The IPO comprises fresh issuance of shares worth Rs 2.18 billion (Rs 218 crore) and an offer for sale of up to 16,77,744 scrips by the existing shareholders, including IL&FS Financial Services and India Rig Company, the draft red herring prospectus (DRHP) filed with Sebi showed.
Proceeds of the issue will be utilised towards repayment of certain borrowing availed by the company and for other general corporate purposes.
According to the merchant banking sources, the initial public offer (IPO) is expected to fetch about Rs 3.5 billion (Rs 350 crore).
Established in 1987, John Energy is a leading Indian company catering to the upstream and mid stream oil and gas industry.
Jhunjhunwala has 18.21 per cent stake in the company, while ICICI Bank owns 4.47 per cent holding in the firm.
In 2016-17, John Energy reported a consolidated revenue of Rs 5.82 billion (Rs 582 crore), compared to Rs 5.65 billion (Rs 565 crore) the previous year. Besides, the firm posted a profit after tax of over Rs 710 million (Rs 71 crore) in 2016-17 against Rs 29 crore in the preceding fiscal.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)