Pennar Engineered Building Systems – a subsidiary of Hyderabad-based Pennar Industries Ltd – will become 12th company this year in India to bring its IPO when the issue opens on 25 August. The building systems solutions provider has submitted its red herring prospectus (RHP) with the capital market regulator Securities and Exchange Board of India (SEBI). Details about the number of shares and price per share are not disclosed yet. These details will be made available close to launch date. The IPO will remain open for subscription between the dates of 25 August and 27 August. Pennar Engineered Building Systems received SEBI approval to launch IPO last month.
In its red herring prospectus, the Hyderabad-headquartered company said it plans to raise INR58 crore through the sale of new shares. In addition, existing investors including private equity player Zephyr Peacock plan to part-exit by selling 55.16 lakh shares through an offer for sale (OFS). The issue will be managed by Motilal Oswal Investment Advisors Private Limited, Axis Capital Limited and Karvy Investor Services Limited.
Use of funds
Majority of the proceeds will be used towards pre-payment of loans availed by the company while the rest will go towards infrastructure including software and hardware and general corporate purposes. Pennar Engineered Building Systems plans to spend INR34 crore in debt repayment of working capital facilities while infrastructure spend for expansion of design and engineered services is estimated at INR8 crore. This leaves INR16 crore for general corporate purposes.
Pennar Engineered Building Systems pips Dilip Buildcon and Prabhat Dairy
According to earlier reports, Dilip Buildcon and Prabhat Dairy were to follow Power Mech Projects’ IPO in August while Navkar Corporation has already said that its IPO will hit the market on 24 August. Even though Pennar Engineered Building Systems’ IPO was not part of the original plan for August, it seems to have outsmarted others.
We intend to analyze the prospects of Navkar and Pennar once pricing details are out. Keeping updated is simple now, follow us on Twitter and Facebook or subscribe to our weekly newsletter on the right sidebar.