PME Power Solutions is planning to raise over Rs 350 crore from the market through an initial public offer (IPO). The company had filed a draft red herring prospectus (DHRP) with market regulator Sebi in July, PME Power Managing Director Anil Aggarwal told Business Standard.
“We expect the permission from Sebi by September-October and then we plan to come out with an IPO. The time has not been finalised yet,” he said. About 25 per cent of the promoters’ equity will be diluted in the IPO by issuing 11.4 million shares. Edelweiss Capital has been appointed as the merchant banker for the IPO.
The company also plans to invest about Rs 500 crore to set up manufacturing units over the next two years with internal resources and expected proceeds from the IPO. About Rs 115 crore will be invested in three manufacturing plants. Two of the plants, including one for manufacturing amorphous metal distribution transformers (AMDT) will be commissioned by October, while another conductors manufacturing unit will come up next year.
To launch the AMDT, the company has already entered into a technical agreement with Japanese major Hitachi. The African market contributes about 75 per cent to the total revenues of the Rs 450 crore in 2010-11. India contributes to the rest.