Precision Camshafts raises Rs 123.05 crore from anchor investors

Shares allotted to anchor investors at the top end of the price band for the IPO

Precision Camshafts has raised Rs 123.05 crore by selling 66.15 lakh shares to anchor investors ahead of the opening of the company's initial public offer (IPO). The shares were allotted to the anchor investors at Rs 186 per share, the top end of the Rs 180 to Rs 186 per share price band for the IPO.

The IPO of Precision Camshafts opens for bidding through the book building route today, 27 January 2016. The bidding for the IPO concludes on Friday, 29 January 2016. Precision Camshafts, promoted by first generation entrepreneurs Yatin Shah and Suhasini Shah, is one of the world's leading manufacturers of camshafts, a critical engine component in passenger vehicles.

Among anchor investors, SBI Mutual Fund was allotted 17.74 lakh shares, IDFC Mutual Fund was allotted 17.74 lakh shares, ICICI Prudential Growth Fund was allotted 13.44 lakh shares, HDFC Trustee Company was allotted 8.06 lakh shares, Birla Sunlife Trustee Company was allotted 2.71 lakh shares and Canara Robeco Mutual Fund was allotted 6.45 lakh shares.

The IPO is a combination of fresh issue of shares aggregating up to Rs 240 crore and offer for sale by promoters and one of the directors. The proceeds of the fresh issue will be used for expansion. The two promoters Yatin and Suhasini Shah are selling a total of 25.86 lakh shares. Promoter group company Cams Technology has put on block 35.63 lakh shares and Jayant Aradhye, a non-executive director, is selling 30 lakh shares through the IPO.

The company proposes to utilize Rs 200 crore from the net proceeds of the IPO for establishment of a new machine shop for ductile iron camshafts at its existing export oriented unit (EOU) situated at Solapur in Maharashtra. The company currently has two state-of-the-art manufacturing facilities - an EOU unit and a domestic unit - both situated at Solapur, Maharashtra. The company supplies over 150 varieties of camshafts for passenger vehicles, tractors, light commercial vehicles and locomotive engine applications. A majority of the company's revenue comes from export of camshafts to various OEMs directly and indirectly. The company has long term relationships with OEMs, including General Motors, Ford Motors, Hyundai, Maruti Suzuki, Tata Motors and Mahindra and Mahindra.

On consolidated basis, the company reported net profit of Rs 34.10 crore on net turnover of Rs 253.37 crore for six months ended 30 September 2015. Net profit stood at Rs 62.36 crore on net turnover of Rs 532.42 crore for the year ended 31 March 2015.

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