Craftsman Automation will hit the primary market on Monday, 15 March 2021, with its initial public offering (IPO) at a price to be determined through a 100% book building process.

The issue will close on Wednesday, 17 March 2021. The price band for the IPO is set at Rs 1488-1490 per share. An investor can bid for a minimum of 10 equity shares and in multiples thereof.

The issue comprises of equity shares comprising a fresh issue of Rs 150 crore and an offer for sale of 45,21,450 equity shares by existing shareholders.

Those offloading shares in the offer-for-sale are Srinivasan Ravi, K Gomatheswaran, Marina III (Singapore) and International Finance Corporation (IFC). Currently, IFC and Marina hold 14.06% and 15.50% stake, respectively, in the company. Besides, Srinivasan Ravi owns a 52.83% stake and K Gomatheswaran has a 7.04% holding.

Ahead of the IPO, the company on 12 March 2021 finalised allocation of 16,58,447 shares to anchor investors at Rs 1490 per share, aggregating to Rs 247.10 crore.

The company proposes to utilise the net proceeds of the issue for repayment or pre-payment of certain borrowings availed of by the company and for general corporate purposes. In addition, the company expects to receive the benefits of listing the equity shares on the stock exchanges.

Craftsman Automation is a diversified engineering company with vertically integrated manufacturing capabilities, engaged in three business segments, namely automotive-powertrain and others, automotive–aluminum products, and industrial and engineering. The company owns and operates 12 strategically located manufacturing facilities across 7 cities in India. It has strong and well-established relationships with several marquee domestic and global OEMs as well as component manufacturers.

On a consolidated basis, the company reported a net profit of Rs 50.66 crore and revenue of Rs 1,022.79 crore in the nine months ended on 31 December 2020.