Precision Camshafts Rs 410 cr IPO to open tomorrow

Precision Camshafts is set to hit the capital markets tomorrow to raise about Rs 410 crore through an initial public offering (IPO).

The IPO, which closes on January 29, would be made through a fresh issue aggregating up to Rs 240 crore and an offer for sale of up to 91,50,000 equity shares of Rs 10 each.

Price band for the offer has been fixed at Rs 180-186 per share. At the upper end, it will garner Rs 410 crore.

From six anchor investors, the company has raised Rs 123 crore by selling shares at the upper price band of Rs 186 apiece.

It allotted a total of 66.16 lakh equity shares to anchor investors at a price of Rs 186 each (including a share premium of Rs 176 per share), aggregating to Rs 123 crore.

The anchor investors were -- SBI Mutual Fund, IDFC Mutual Fund, ICICI Prudential Mutual Fund, HDFC Trustee Company Ltd, Birla Sunlife Trustee company and Canara Robeco Mutual Fund.

Proceeds from the fresh issue would be utilised for establishment of a machine shop for ductile iron camshafts at the export oriented unit (EOU) in Solapur, Maharashtra at a cost of Rs 200 crore and for other general corporate purposes.

The company also proposes to set up two new machine shops at Solapur, for ductile iron camshafts and assembled camshafts respectively, by fiscal 2017 and fiscal 2018.

SBI Capital Markets, HDFC Bank and India Infoline are the book running lead managers to the issue.