Raymond-owned JK Files & Engineering files paperwork for Rs 800-cr IPO

The public issue is entirely an offer of sale (OFS) of equity shares by promoter Raymond

JK Files & Engineering Ltd, a company that is in the business of auto parts, has filed preliminary documents with markets regulator Sebi to raise Rs 800 crore through an initial public offering (IPO).

The public issue is entirely an offer of sale (OFS) of equity shares to the tune of Rs 800 crore by promoter Raymond Ltd, according to the draft red herring prospectus filed on Wednesday.

At present, Raymond, the country's leading player in suiting and shirting, holds 100 per cent stake in the company.

Since the public issue is completely an OFS, the company will not receive any funds raised from the IPO.

The company is engaged in the manufacturing of precision engineered components for tools and hardware (files and drills) and marketing of hand tools, power tool accessories and power tool machines and manufacturing of auto components and engineering products -- RNG gears, flexplates and water pump bearings.

JK Files & Engineering posted a consolidated profit of Rs 25.46 crore in FY2020-21 against Rs 14 crore in the previous year. Its registered a revenue of Rs 350 crore in FY21 as against Rs 382 crore in the preceding fiscal.

SBI Capital Markets, DAM Capital Advisors (formerly known as IDFC Securities) and HDFC Bank are the book running lead managers to the issue.

On December 1, diversified Group Raymond announced that its board approved the listing of its subsidiary JK Files & Engineering.