Craftsman Automation, an auto component maker, has received an observation from the market watchdog SEBI to roll out its IPO.
The company had filed its draft papers in December and received an observation from SEBI last week.
According to its DRHP, the company is gearing up to open its fresh issue of equity shares aggregating up to Rs150cr. The company will also be going live with its Offer For Sale or OFS of up to 45,21,450 equity shares by promoters and its existing shareholders.
International Finance Corporations and Marina III (Singapore) Pte Limited will be offloading their stake of shares in the OFS. Both hold over 14% and 15% stake in the company, respectively.
Another stakeholder, Srinivasan Ravi owns 52.83% shares and K Gomatheswaran holds 7.04%, both of whom will also offload shares in the OFS.
The company said it intends to use the proceeds from the fresh issuance for repayment and/or pre-payment of certain borrowings and for other general corporate puposes. It also expects to receive the benefits of listing shares on the stock exchanges.
IIFL Securities and Axis Capital have been appointed as the book running lead managers to the fresh issuance. While the shares are proposed to be listed on BSE and NSE.
The company had filed draft papers and received an approval from the regulator in June 2018, but didn't go ahead with the issue due to unfavourable market conditions.
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