Hyderabad-based Midfield Industries will launch its initial public offer (IPO) to raise up to Rs 60 crore on July 19.
The company has fixed a price-band of Rs 126 to Rs 133 for its IPO and the issue will close on July 21, stated a press release issued here today.
The issue would constitute 35.10 per cent of the fully diluted post-issue paid-up capital of the company.
A big player in the organised industrial packaging industry, Midfield manufactures all varieties of steel strappings, seals, collated nails and corner boards.
Midfield Industries proposes to utilise a part of the net proceeds of the issue to fund expansion of its existing plants as well as to set up new manufacturing facilities.
The company plans to expand its current manufacturing facilities at Hyderabad, Mumbai and Roorkee. It will set up a new VCI paper facility at Hyderabad and a high tensile steel strapping facility at Sharjah, the release said.
The investment for expanding its existing manufacturing facility at Hyderabad is pegged at Rs 13.15 crore while for the new VCI paper unit there, the investment would be Rs 4.16 crore.
Its Mumbai manufacturing plant's expansion would involve an investment of Rs 6.27 crore while the new unit to be set up at Sharjah would require an investment of Rs 12.70 crore.
Besides, the investment at its existing Roorkee facility is pegged at Rs 1.59-crore.
The company also proposes to augment its long-term working capital requirement by Rs 5.35 crore.
With a customer-base of over 400, the company's products are largely used by basic industries such as steel, aluminium, copper, glass, refractories, to name a few.
Some of its leading customers, include Essar, Sail, Hindalco, Nalco, Sterlite and Saint Gobain, among others.