Neel Metal Products Limited has recently filed DRHP with SEBI for its Initial Public Offering of 52,51,0000 equity shares of Rs 10 each at a premium do be decided later through the book building process. The net issue to the public constitutes of 49,88,450 equity shares with 2,62,550 equity shares reserved under the Employees category. The net issue will constitute 33.25% of the fully diluted post paidup capital of the company.
Neel Metal Products Limited is a part of the JBM group of companies, which is a prominent player in the automotive components manufacturing industry in India. The Company is an integrated steel processing and automotive products manufacturer, whose integrated facilities enable it to manufacture a wide spectrum of automotive components, ranging from production of steel blanks, steel tubes for two-wheelers, frames for scooters, wheel rims, stamped components and complete fabricated and painted body for three-wheelers.
Net Issue of the Neel Metal Products IPO will be not less than 4,988,450 Equity Shares of which QIB Portion is Up to 2,494,225 Equity Shares (available for allocation on proportionate basis only) of which: Mutual Funds Portion Up to 124,711 Equity Shares Non-Institutional Portion is Not less than 748,268 Equity Shares and the
Retail Portion of the IPO is Not less than 1,745,958 Equity Shares.
The objects of the Neel Metal Products Limited IPO are
(a) to fund long term capital expenditure at the Company’s existing facilities at Gurgaon, Haridwar and Pantnagar;
(b) long term capital expenditure at the Company’s steel service centres (“SSCs”) at Pune, Gurgaon and Pantnagar;
(c) to fund the Company’s equity contribution in its joint venture companies TSNA, ANTB and Neel Metal Fanalca;
(d) to repay certain existing loans of the Company; and (e) for certain general corporate purposes.
The Equity Shares offered through IPO are proposed to be listed on BSE and NSE. The Company has received in-principle approval from BSE and NSE, for the listing of the Equity Shares.
Book Running Lead Manager to the Neel Metal Products IPO is ICICI Securities Limited and the Registrar for the Neel Metal IPO is Karvy Computershire Private Limited.
Neel-Metal-Products-Limited-IPO Draft Prospectus
1 comment so far ↓
Neel Metal Products IPO doesnt sound like a big issue, but considering the current markets investors can make lot of returns when applying to such kind of small issues. So better to apply for Neel Metal IPO if it is out.
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