Metalman Auto files IPO papers with SEBI eyes ₹350 crore via fresh issue

Auto component maker Metalman Auto Ltd. has filed draft papers with capital markets regulator SEBI to mobilise funds through an initial public offering (IPO).

The proposed IPO is a combination of a fresh issue of equity shares worth ₹350 crore and an offer for sale (OFS) of up to 1.26 crore shares by its promoters, according to the draft red herring prospectus (DRHP).

Proceeds from the fresh issue to the tune of ₹25 crore will be used to partially finance the capital expenditure towards the procurement of plant and machinery at Pithampur manufacturing unit 2 in Madhya Pradesh.

Additionally, ₹240 crore will be used for payment of debt, besides, a portion of funds will be used for general corporate purposes, draft papers filed on Monday showed.

Founded in 1986, Metalman Auto is a one-stop shop for sheet metal and tubular fabrication, metal finishing and assembly of components for OEMs in the automotive and non-automotive sectors.

The company is primarily focused on manufacturing metal components for two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, agri-vehicles and off-highway vehicles.

Metalman Auto has nine manufacturing units across five states in India, strategically located in proximity to its OEM customers. It serves various customers, including Bajaj, Hero MotoCorp, Honda and TVS.

Axis Capital Limited, ICICI Securities Limited. and Motilal Oswal Investment Advisors Limited are the book-running lead managers to the public issue.