Allots 53.61 lakh shares to 13 anchor investors
HPL Electric and Power has raised Rs 108.29 crore by selling 53.61 lakh shares to a total of 13 anchor investors ahead of the opening of the company's initial public offer (IPO). The shares were allotted to the anchor investors at Rs 202 per share, the top end of the Rs 175 to Rs 202 per share price band for the IPO.
Among the anchor investors, HDFC Prudence Fund will be allotted 21.43 lakh shares, Copthall Mauritius Investment will be allotted 6.18 lakh shares and National Westminster Bank PLC as trustee of The Jupiter India Fund will be allotted 2.88 lakh shares. Other investors include, Jupiter South Asia Investment Company, Birla Sun Life Emerging Leaders Fund, IDFC Sterling Equity Fund, Nomura Singapore, among others.
HPL Electric and Power seeks to raise Rs 361 crore through an IPO. The issue opens for bidding today, 22 September 2016 and closes on 26 September 2016. The price band for the IPO has been fixed at Rs 175 to Rs 202 per share.
The company manufactures electrical appliances, switch-gears, electronic energy meters and electrical protection equipment. The company had the largest market share with 20% in the market for electricity energy meters in India. The company currently manufactures and sells its products under the umbrella brand 'HPL', which has been registered in India since 1975.
Out of Rs 361 crore proposed to be raised through the IPO, the company will spend Rs 130 crore towards repayment/ prepayment of certain indebtedness; Rs 180 crore towards funding working capital requirements and remaining for general corporate purpose.
On a consolidated basis, HPL Electric and Power reported net profit of Rs 36.62 crore on net sales of Rs 1116.38 crore in the year ended March 2016.
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