India’s Maini Precision Products files early papers for IPO
By Vinu Lal
10:55, 15 December 2021
India’s Maini Precision Products, a manufacturer and supplier of high-precision components and assemblies, filed preliminary papers for an initial stake sale to the public, according to a web posting by one of its issue managers.
The company, based out of the south Indian city of Bengaluru, is yet to finalise the per-share price and date of subscription for the initial public offering (IPO).
Maini Precision Products is looking to raise about INR9bn ($118.34m) through the IPO, according to a previous report by The Economic Times newspaper.
Fresh Issue and offer for sale
Maini’s IPO comprises a fresh issue of shares totalling INR1.50bn and an offer for sale (OFS) of up to 25.48 million shares by existing investors, according to the Draft Red Herring Prospectus (DRHP) or early papers.
The company intends to use INR1.1bn of the net proceeds of the fresh issue to repay certain debts. It would also use a yet-to-be-finalised amount for general business purposes, the DRHP showed.
According to The Economic Times, this is the company’s second attempt to go public. The company had earlier filed a DRHP in 2015 and even after receiving the Indian market regulator’s approval, it did not launch the IPO, the newspaper said.
Incorporated in 1973, Maini is into critical manufacturing and finishing processes including machined castings, die castings, machined forgings, bar route machining, plate machining, surface treatment, heat treatment, critical assembly and ancillary activities.
The firm caters to clients in the automotive, industrial and aerospace sectors across the globe. The company primarily exports to the US, France, Sweden, Italy, Slovakia, England, Japan, Spain, Poland and Germany.
The company’s revenue from operations stood at INR4.27bn for the financial year ended 31 March 2021, down from INR 5.7bn recorded for the same year-ago period.
ICICI Securities, IIFL Securities are the managers of the issue.