Coimbatore-based engineering firm Craftsman Automation Pvt. Ltd. (CAPL) – which counts the International Finance Corporation and Standard Chartered Private Equity among its investors – has filed draft papers with the Securities and Exchange Board of India (SEBI) for its initial public offering.
According to the draft prospectus, the IPO comprises a fresh issue of equity shares aggregating up to Rs 400 crore ($60 million) and an offer for sale of up to 4,383,320 shares of Craftsman Automation by promoters and investors.
The public listing will see promoter Srinivasan Ravi and individual shareholder K Gomatheswaran paring their stake along with private equity investors Marina III (SINGAPORE), an affiliate of Standard Chartered Private Equity and World Bank Group‘s International Finance Corp.
The submission comes close on the heels of IFC filing a disclosure stating that it was considering investing up to $30.7 million in the auto components maker.
The fresh investment by IFC, in the form of long-term debt, is said to be used to part finance capacity augmentation and modernisation of the company’s existing facilities through the purchase of new machinery, the disclosure said.
IFC first invested $37 million in CAPL in May 2010, while Standard Chartered Private Equity (Mauritius) II Ltd (SCPE) invested Rs 85 crore for a minority stake in CAPL in August 2012. Standard Chartered PE later transferred the stake to its affiliate, Marina III Singapore Pte Limited, in 2017.
IFC and Marina currently hold 14.06 per cent and and 15.50 per cent respectively, in CAPL, the company said. Through this public listing, IFC and Marina are likely to halve their stake by selling 1.41 million and 1.56 million shares, respectively.
Srinivasan Ravi, who holds 52.83 per cent stake, will sell around 210,000 shares and K Gomatheswaran, who owns 7.04 per cent stake, plans to offload 1.2 million shares.
The company plans to use the IPO proceeds towards funding the repayment/pre-payment of debt and for general corporate purposes. The shares offered through the IPO are proposed to be listed on stock exchanges and the company has received an ‘in-principle’ approval from BSE and NSE for the listing.
CAPL is a manufacturer of high-quality complex precision engineered machined components, industrial gear boxes, sheet metal parts and assemblies for automotive and industrial customers worldwide. The company has facilities in Coimbatore, Pune, Sriperumbudur (near Chennai), Bangalore, Faridabad, Jamshedpur and Pithampur.
ICICI Securities, IIFL Holdings, and SBI Capital Markets are the merchant bankers managing the IPO.