This is the second attempt by an Ahmedabad-based company to launch an IPO. Prior to August 2018, the company had also submitted an IPO application to SEBI.
Bearing cage maker Hersha Engineers International has applied to SEBI for approval of its IPO. The company is preparing to raise Rs 755 crore through this IPO. The IPO will have a new issue of Rs 455 crore where existing shareholders will sell shares worth Rs 300 crore under the offer portion for sale.
In the sale offer, Rajendra Shah will sell up to Rs 66.75 crore, Harish Rangwala up to Rs 75 crore, Tilak Shah up to Rs 16.50 crore, Charushila Rangwala up to Rs 75 crore and Nirmala Shah up to Rs 66.75 crore. In this offer separate shares will be reserved for the employees of the company.
Of the proceeds from the IPO, Rs 270 crore will be used for debt repayment, Rs 77.95 crore for purchase of equipment made by the company, and Rs 7.12 crore will be used for infrastructure repairs and renovation of existing units. As well as for the company. Will be carried out in normal operation.
This is the second attempt by an Ahmedabad-based company to launch an IPO. Prior to August 2018, the company had also submitted an IPO application to SEBI. The company has 5 manufacturing units. It has 3 manufacturing units in Gujarat, 1 manufacturing unit in China and 1 unit in Romania. Axis Capital, Equirus Capital and JM Financial are the bookkeeping lead managers of this IPO.