Metalman Auto Limited Files DRHP For Rs 350 Crore IPO

Indian auto component maker Metalman Auto Limited files DRHP with the stock market regulator SEBI. The company plans to seek Rs 350 crore from this initial public offering. 

According to the draft papers, this proposed public offer will be a mixture of a fresh issue and an offer for sale. The fresh issue part is equity shares is worth Rs 350 crore and OFS is of 1.26 crore equity shares, worth is not yet disclosed.

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Metalman Auto Limited: About the Company

Metalman Auto Limited was founded in 1986. It is a one-stop shop for sheet metal and tabular fabrication, metal finishing, and assembly of components for OEMs in the automotive and non-automotive sectors.

The Metalman Business is focused on manufacturing metal components for two-wheelers, three-wheelers, passenger vehicles, commercial vehicles, agri-vehicles and off-highway vehicles. 

The company also undertakes fabrication and manufacturing of aesthetic-focused components for white body goods such as front and rear panels and rear covers of washing machines. 

It is an engineering process focused company with nine manufacturing units out of which seven operated by Metalman company and two operated through Metalman Micro Turners across five states in India, strategically located in proximity to our OEM customers. 

Metalman Auto Limited: Objectives

The net funds received from the IPO issue will be allocated for financing the capital expenditure toward the procurement of plant and machinery at Pithampur manufacturing unit 2 in Madhya Pradesh. Additionally, Rs 240 crore will be used for payment of debt, besides, a portion of funds will be used for general corporate purposes.

Consolidated Financials Metalman Auto Limited

Metalman Auto Limited reported a revenue of Rs 15,075.97 million and net profit of Rs 500.04 million for the year ended on 31 Mar 2024. Earlier the company reported a revenue of Rs 10,503.91 million and PAT of 631.11 million in FY23 and revenue of Rs 10,307.58 million and net profit of Rs 349.64 million. 

The company showed a sharp jump in its revenue in the period between FY23 and FY24. But in the same period, profit shows a slight decline. 

Lead Managers and Registrar of Metalman Auto IPO

The book-running lead managers for the Metalman Auto Limited IPO are Axis Capital Limited, ICICI Securities Limited and Motilal Oswal Investment Advisors Limited. The registrar for this IPO is Link Intime India Private Limited. 

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