Metalman Auto Ltd to Launch IPO: Fresh Equity and Promoter Sale

Auto components maker Metalman Auto Ltd has filed draft papers with SEBI for an IPO. The IPO includes a fresh issue of Rs 350 crore and an offer for sale of 1.26 crore shares by promoters. Funds will be used for capital expenditure, debt repayment, and corporate purposes.

Metalman Auto Ltd, a leading auto components manufacturer, has filed draft papers with the Securities and Exchange Board of India (SEBI) to raise funds via an initial public offering (IPO). The IPO will feature a fresh issue of equity shares worth Rs 350 crore and an offer for sale (OFS) of up to 1.26 crore shares by its promoters, according to their draft red herring prospectus (DRHP).

Proceeds from the fresh issue, amounting to Rs 25 crore, will be allocated towards financing the capital expenditure required for acquiring plant and machinery at their Pithampur manufacturing unit 2 in Madhya Pradesh. Furthermore, Rs 240 crore will be utilized for debt repayment, with the remainder earmarked for general corporate purposes, as detailed in the draft papers submitted on Monday.

Established in 1986, Metalman Auto is known for its expertise in sheet metal and tubular fabrication, metal finishing, and component assembly for both automotive and non-automotive sectors. The company operates nine manufacturing units across five states in India, catering to clients like Bajaj, Hero MotoCorp, Honda, and TVS. Axis Capital Limited, ICICI Securities Limited, and Motilal Oswal Investment Advisors Limited are acting as the book-running lead managers for this public issue.