Craftsman Automation kicked off its Rs 824 crore initial public offering (IPO) on Monday, March 15, 2021. On the first day of the bidding process, the public offering was subscribed 55 percent. For the retail category, the subscription was made 1.06 times, followed by 0.09 times subscription in the non-institutional bidders (NII) category. However, no subscription has been made yet for the qualified institutional buyers (QIB) category.
Out of the 38,69,714 shares being offered by the company, investors bid for 21,31,410 shares. The three-day issue will conclude on Wednesday, March 17.
According to the information available, the allotment of shares is likely to be finalised on March 22, while the listing may take place on March 25.
The auto component maker has fixed a price band of Rs 1,488 to Rs 1,490 per share for its offering. Also, the IPO consists of a fresh issue of equity shares summing up to Rs 150 crore and an offer for sale of up to 45,21,450 shares by the promoter and existing shareholders.
The company had raised Rs 247 crore from anchor investors just ahead of the IPO. HSBC Global Investment Funds, Tata Mutual Fund (MF), Aditya Birla Sunlife MF and the Nomura Trust are the anchor investors who helped to raise the amount.
Investors also need to know that 50 percent of the issue has been reserved for qualified institutional buyers followed by 35 percent for retail investors and 15 percent for non-institutional bidders.
The funds raised through the offering will be used for the repayment or pre-payment of certain borrowings availed of by the company and for general corporate purposes. The company also expects to receive the benefits of listing the equity shares on the stock exchanges (BSE and NSE).
Craftsman Automation is a company involved in three business segments that is automotive – powertrain and others, automotive -aluminium products, and industrial and engineering. It is also one of the leading players in the machining of cylinder blocks for the tractor segment in India. The headquarters of the company is in Coimbatore while the satellite units are spread across the country including Pune, Faridabad, Pithampur, Jamshedpur, Bengaluru, Chennai.