Gravita India Limited (the “Company”), engaged in the business of manufacturing of lead metal by recycling & smelting process, proposes to enter the capital markets on November 01, 2010 with its Initial Public Offer (“IPO” / the “Issue”) of 36,00,000 equity shares of Rs. 10/- each. The price band of the Issue has been fixed at Rs. 120/- to Rs. 125/- per equity share. The Equity Shares of the Company are proposed to be listed on the Bombay Stock Exchange Limited (BSE) and National Stock Exchange of India Limited (NSE). IPO has been awarded “BWR IPO Grade 3” by Brickwork Ratings India Pvt. Ltd. (BWR) indicating average fundamentals for the issue in relation to its peers. BWR assigns IPO grading on a scale of IPO Grade 5 to IPO Grade 1, with Grade 5 signifying strong fundamental and Grade 1 signifies poor fundamentals of the issue in relation to its peers.
The Issue, which will be through a 100% “Book Building” process. At least 50 % of the Issue shall be allocated on a proportionate basis to qualified institutional buyers (QIBs), not less than 15% of the Issue shall be available to non-institutional bidders and not less than 35% of the issue shall be available to retail individual bidders.
Gravita India Limited intends to utilize the net proceeds of the Fresh Issue towards setting up additional manufacturing facilities at Jaipur and new facility at Wada, Maharashtra. The Company would also use the proceeds towards investing in overseas ventures at - Sri Lanka- Navam Lanka Limited, Senegal - Gravita Senegal SAU and Honduras – Gravita Honduras SA. Gravita India Limited also proposes to invest in setting up manufacturing facilities at Australia, Belarus, Chile and Mexico.
About Gravita India Limited:
Gravita India Limited is the flagship Company of the Gravita Group which was established in the year 1992. The Company, engaged in the business of manufacturing of Lead Metal by Recycling & Smelting process & other lead products, has manufacturing set up at Jaipur. Gravita India Limited specializes in producing high quality pure lead ingots with minimum purity level of 99.97% by weight. The Company has a quality control Laboratory consisting of Optical Emission Spectrometer (OES) of Spectro Germany make & Atomic Absorption Spectrometer (AAS) to monitor the purity levels of the product. The Company’s manufacturing operations to produce Pure Lead / Lead Alloys, Lead Oxides (Litharge, Red Lead & Lead Sub-Oxide), are controlled round the clock by experienced Chemists & Quality Control supervisors. The operations are ISO 14001:2004 certified confirming environment friendly recycling operations as per international standard. Besides having manufacturing facility in India, the Company has successfully established subsidiaries in Ghana, Senegal, , Mozambique, Zambia, Ethiopia & Georgia The Company has also made investments in – Sri Lanka and Honduras .
Net profit of Gravita India Limited on consolidated basis has increased by 157.81% in F.Y. 2009-10 at Rs.1397.29 lacs as compared to Rs.541.96 Lacs in F.Y. 2008-09. This is due to substantial increase in sales and reduction in finance cost. The company is diluting 26.06% of the post IPO paid up capital.