Craftsman, backed by Standard Chartered PE, IFC, plans IPO

Standard Chartered PE and IFC-backed precision automobile and industrial components maker Craftsman Automation Pvt (Craftsman) is planning to go in for an initial public offering (IPO). Ahead of listing, the company is raising around $30 million (around Rs 2 billion) to set up satellite factories and on expansions in various parts of the country.
 

IFC will invest up to $30.7 million as a loan to part finance the project. It would provide long-term debt funding with sufficient grace period, to finance the company's expansion, the World Bank’s investment arm said.
 

IFC was the first external equity investor in Craftsman in 2010 and has played an important role in making the company IPO-ready. 
 

Craftsman is headquartered at Coimbatore, and has manufacturing facilities in Coimbatore, Pune, Sriperumbudur (near Chennai), Bengaluru, Faridabad, Jamshedpur and Pithampur. The project expenditure will be incurred across all the manufacturing facilities. The company is also planning to set up its satellite units near major auto manufacturing hubs and developing additional facilities at Faridabad, Pune, Chennai and Perundurai within the next one year. The proposed project is for capacity augmentation and modernisation of the existing facilities through purchase of new machinery and for expansion of the company’s facilities.

Craftsman is a diversified engineering company, with vertically integrated manufacturing capabilities, primarily catering to the automotive and industrial and engineering segments. The company offers end-to-end solutions, including design and process and design engineering services and manufacturing services including non-ferrous, foundry, heat treatment, fabrication, machining and assembly.

S Ravi is the majority shareholder of Craftsman with 52.83 per cent. The other major shareholders are the private equity investors IFC and Standard Chartered Private Equity through its investment arm Marina III Singapore Pte Ltd. who in aggregate hold 29.56 per cent.