Receives bids for 3.03 crore shares
The initial public offer (IPO) of Precision Camshafts received bids for a total of 3.03 crore shares, as per data from the National Stock Exchange (NSE) website. The IPO was subscribed 1.91 times. The bidding for the IPO closed yesterday, 29 January 2016.
As per the breakdown of subscription for the IPO according to various categories of investors, qualified institutional buyers (QIBs) portion was subscribed 2.62 times, non institutional investors portion was subscribed 0.73 times, and retail individual investors (RIIs) portion was subscribed 2.01 times.
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 sold a total of 25.86 lakh shares. Promoter group company Cams Technology had put on block 35.63 lakh shares and Jayant Aradhye, a non-executive director, sold 30 lakh shares through the IPO.
Precision Camshafts raised Rs 123.05 crore by selling 66.15 lakh shares to anchor investors. Theses 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 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.
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.
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