Mumbai: HPL Electric and Power Ltd, which manufactures electrical equipment such as meters, switchgears, wires and cables, will launch its initial public offering (IPO) on 22 September, said three people aware of the development.
The company is looking to raise between Rs.350 crore and Rs.400 crore through its IPO, said the first of the people, requesting anonymity as he was not authorized to speak to the media. “The IPO will open on 22 September and close on 26 September. The anchor book will be opened on 21 (September),” he said, adding that the price band will be finalized in a couple of days.
The anchor book is the portion of the IPO that bankers allot to institutional investors on a discretionary basis. Anchor book subscription typically opens a day before the IPO opens.
SBI Capital Markets Ltd, ICICI Securities Ltd and IDFC Bank Ltd are financial advisers to the issue.
“HPL Electric & Power Ltd has filed a draft red herring prospectus with capital markets regulator Securities and Exchange Board of India (Sebi) for its initial public offering (IPO) on February 25th, 2016. The company has received the Sebi clearance in May 2016 which is valid for a year. The timing of opening the IPO will be decided by company in consultation with BRLMs (book running lead managers),” the company said in an emailed response.
HPL, led by Lalit Sheth, is looking to dilute 25% of the promoter stake, bringing it to around 75% after the IPO.
The company intends to use the proceeds for repayment and prepayment of loans, funding working capital requirements, and general corporate purposes.
According to the draft papers, for the first six months of fiscal 2016, the company reported a consolidated revenue of Rs.550.82 crore and a profit of Rs.16.34 crore. For the full fiscal year 2015, it reported a consolidated revenue of Rs.1,051.85 crore on profit of Rs.34.62 crore.
So far this year, 17 firms have raised almost Rs.11,936 crore through initial share sales, according to data from primary market tracker Prime Database. Last year, 21 firms raised Rs.13,614 crore through the IPO route, data showed.