Auto component maker Craftsman Automation has received capital markets regulator Sebi's go-ahead to launch an initial public offering.
With this, the total number of companies getting Sebi's approval to float an initial public offer (IPO) has reached 42 so far this year.
Craftsman Automation had approached markets watchdog in June seeking its clearance to float an initial share-sale and obtained its "observations" on August 24, as per the latest update with Securities and Exchange Board of India (Sebi).
The regulator's observations are necessary for any company to launch public issues such as initial public offer (IPO), follow-on public offer (FPO) and rights issue.
Going by the draft papers, Craftsman Automation's IPO comprises a fresh issue of equity shares aggregating up to Rs 400 crore and an offer for sale of up to 43,83,320 shares by promoters.
The promoters offloading the stakes include Srinivasan Ravi (2.10 lakh shares), Marina III (SINGAPORE) (over 15.59 lakh), IFC (14.14 lakh ) and K Gomatheswaran (up to 12 lakh).
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The company plans to utilise the funds towards funding the repayment/pre-payment, in full or part, of certain borrowings and for general corporate purposes.
International Finance Corporation (IFC) and Marina hold 14.06 per cent and 15.50 per cent stake, respectively, in the company. Besides, Srinivasan Ravi holds 52.83 per cent stake and K Gomatheswaran (7.04 per cent).
There is a reservation of equity shares worth Rs 5 crore for subscription by eligible employees, constituting 5 per cent of the post offer paid up share capital of the company.
ICICI Securities, IIFL Holdings and SBI Capital Markets are the book running lead managers to the issue.
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