Ramakrishna Forgings plans IPO

Ramakrishna Forgings Ltd, the largest forgings firm in eastern India, has decided to hit the primary market in March with an initial public offering (IPO) of Rs 12.25 crore to part finance its expansion project.

The company's IPO prospectus has been cleared by the capital market regulator, the Securities and Exchange Board of India (Sebi).

The company said it received clearance from the Bombay Stock Exchange to list shares. A permission from National Stock Exchange (NSE) is awaited.

Naresh Jalan, managing director of the company said the issue would offer 61.25 lakh equity shares at Rs 10 each with a premium of Rs 10.

He said the installed capacity would be increased from 5,550 tonne to 12,150 tonne a year.

Justifying the price of the issue, an official of Microsec India, the merchant banker, said that net asset value stood at Rs 16.47 on September 30. Post issue, it would be Rs 18.25. The company reported a net profit of Rs 60 lakh over a total income of Rs 25.66 crore last year.

During the first six months of the current fiscal, it posted a turnover of Rs 17.26 crore. Total income by the end of the year is expected to go up to Rs 40 crore.

Post issue, the promoters holding will come down to 51 per cent.