Porwal Auto Components Limited IPO
Issue Open: 17 December 07
Issue close: 20 December 07
Price band: Rs.68-75 per Share (Fv 10)
No. of Shares: 50 Lakhs
Post IPO equity: Rs.15 Crore
Promoters Post IPO: 36.42%
Company background
Indore based Porwal Auto Components Limited (PACL) was started in 1992. It manufactures and sells SG and CI castings for the
automobile sector for Commercial Vehicles. The manufacturing plant of the company is situated at Pithampur 30 Kms. away from
Indore.
Porwal Auto Components Limited manufacturers around 12 different categories of castings such as SG Iron & Grey Iron Hubs,
Different carriers and cases, bracketory components, Transmission cases, T G cases, Housings & cover components, Brake Drums,
Links components, Pulleys, Pump parts, Exhaust manifolds and Bends.
Porwal's client list includes companies like Eicher Motors Ltd, Man Force Trucks Pvt. Ltd, L & T Case Equipment Ltd, Force Motors
Ltd, Eicher Tractors Ltd, Tata Autocomp Systems Ltd, Brakes India Ltd, Gajra Gears Ltd, Shakti Pumps India Ltd, Diesel
Components Works.
Objectives of the Issue
The company aims to raise upto Rs.37.5 Crore (at upper price band) It is expanding its capacity from 6600 MT to 27600 MT, also
setting up a small wind farm of 1.5 MW Power. Its capex plans are as:
Particulars Amount (Rs. Crore)
Land 0.17
Factory Building 5.45
Plant & Machinery 30.66
Wind Mill 9.9
Misc. Fixed Assets 5.49
Contingencies 1.51
Pre-Operative expenses 2.07
Total (Rs. Crore) 55.25
The company plans to meet IPO & Corporate expenses from the issue proceeds.
The company has tied up with State Bank of Indore for a term loan of Rs.12 Crore. Besides, it has raised unsecured loans of Rs.2.5
Crore & Rs.1.77 Crore internal accrual for the expansion.
Highlights
Indian auto ancillary industry is growing in line with the main line auto industry.
A strong economic growth is to be accompanied with growth in CV sector. A lot of global players are entering the Indian market.
Replacement demand for components is highest among all sectors of vehicles, due to excessive usage & poor Indian road
conditions.
PACL caters largely to CV sector.
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment