New Delhi: Metalman Auto Limited has officially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company aims to raise funds via an initial public offering (IPO) of Equity Share Capital, with a face value of INR 2 each. The total issue size includes a fresh issue of equity shares worth up to INR 350 crore and an offer for the sale of up to 12,636,162 equity shares by the existing shareholders.
Metalman Auto Limited serves both the automotive and non-automotive sectors, offering comprehensive services such as sheet metal, tubular fabrication, metal finishing, and assembly of components for original equipment manufacturers (OEMs).
The company plans to use the net proceeds for part-financing the capital expenditure towards the procurement of plant and machinery at its Pithampur manufacturing unit, estimated to be INR 25 crore. This expenditure is slated to be deployed in FY 2025 and FY 2026.
Additionally, funds will be used for the repayment or pre-payment, either in part or full, of certain borrowings of the company and its subsidiary, Metalman Micro Turners, which is estimated at INR 240 crore. The balance will be allocated for general corporate purposes.
The equity shares offered through the Red Herring Prospectus are proposed to be listed on both BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE).
Axis Capital Limited, ICICI Securities Limited, and Motilal Oswal Investment Advisors Limited are the Book Running Lead Managers to the issue.
