Benara Bearings may raise Rs 33.5 cr from IPO

Auto component maker Benara Bearings and Pistons plans to raise up to Rs 33.5 crore through its initial public offer and has fixed a price band of Rs 60 to Rs 63 per share for the same.

The proceeds of the issues, which will open on March 20 and close on March 22, will be utilised in expansion of the company's distribution network, setting up retail stores for parts and capex for solar business subsidiary, Benara Bearings and Pistons managing director Vivek Benara said today.

"We have fixed the price band for our IPO at Rs 60 to Rs 63 a share. The IPO size is Rs 33.5 crore on the higher price band. The fresh issue will be of 5,316,000 shares," he told reporters here.

Of the total proceeds, Rs 10.5 crore will be used as working capital for spare parts business and another Rs 7.5 crore in opening of retail stores for spare parts, he said, adding that in the first year some 10 such stores are expected to come up.

"We are also looking at margin money for our solar business for subsidiary company, which will be to the tune of Rs 5 crore, and rest of the funds for corporate purposes," said Benara.

The company, with two manufacturing facilities in Agra, makes engine bearings, bushes, pistons, piston pin, piston rings, cylinder liners and sleeves and engine valves.

Besides, it is also engaged into marketing of products like ball bearings, spark plugs besides valve seals and batteries (motorcycle, inverter, e-rickshaws) under its brand which are sourced through third-party contract manufacturing.

The company markets its product in OEM (original equipment manufacturer) and replacement market. It also focuses on two-wheeler parts replacement market.

On a standalone basis, the OEM and the parts replacement business contributed Rs 4.6 crore and Rs 72.6 crore, respectively, to the company's overall revenue during the previous financial year.

Pantomath Capital Advisors is the lead manager for the issue, while Bigshare Services is the registrar.

The shares of the company are proposed to be listed on the small and medium enterprises platform of the Bombay Stock Exchange.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)