Domestic forging manufacturer Hilton Metal Forging Ltd will hit the capital market on 18 April with an initial public offer to raise Rs 38.15 crore to part fund its expansion plans.
The company will offer 54.50 lakh equity shares of Rs 10 each at a price of Rs 70 per share in the fixed-price IPO, which will close on 24 April.
Out of the total issue, 5,000 equity share would be offered to Centrum Capital Ltd, while leaving 54.45 lakh shares for the public.
Credit rating agency ICRA has assigned an IPO Grade 2 indicating below average fundamentals.HMFL exports 90% of its products to manufacturers and distributors in the US, the UK, Europe and Middle East and is pursuing opportunities in Canada and Gulf countries.
“Volumes in the domestic market for stainless forged products are not large and, therefore, we do not cater for it. We are focused on the oil and gas sector and not automotive sector that has a larger domestic market,” HMFL CMD Yuvraj Malhotra said.
The company’s clients include USA’s Norca Industrial Co, UK’s Evenort Limited, Netherlands’ Arcus Staal Bv, German Presch Edelstahl.HMFL’s expansion plan would involve installing plant and tool rooms, heat treatment shop and laboratory.
The company said while minimum 10% of the net public issue would compulsorily allotted to QIBs, the remaining would be equally divided among the retail and non-retail investors.
The company reported total income of Rs 45.31 crores for the nine months period from April-December 2006. It had posted income of 47.84 for 2005-06.