New Delhi: Precision Camshafts Ltd is set to hit the capital markets on Wednesday to raise about 410 crore through an initial public offering (IPO).

The IPO, which closes on 29 January, would be made through a fresh issue aggregating up to 240 crore and an offer for sale of up to 91,50,000 equity shares of 10 each. The price band for the offer has been fixed at 180-186 per share. At the upper end, it will garner 410 crore.

From six anchor investors, the company has raised 123 crore by selling shares at the upper price band of 186 apiece. It allotted a total of 66.16 lakh equity shares to anchor investors at a price of 186 each (including a share premium of 176 per share), aggregating to 123 crore.

The anchor investors were SBI Mutual Fund, IDFC Mutual Fund, ICICI Prudential Mutual Fund, HDFC Trustee Company Ltd, Birla Sunlife Trustee company, and Canara Robeco Mutual Fund.

Proceeds from the fresh issue would be utilized for establishment of a machine shop for ductile iron camshafts at the export oriented unit in Solapur, Maharashtra, at a cost of 200 crore and for other general corporate purposes.

The company also proposes to set up two new machine shops at Solapur, for ductile iron camshafts and assembled camshafts respectively, by fiscal 2017 and fiscal 2018. SBI Capital Markets, HDFC Bank, and India Infoline are the book running lead managers to the issue. PTI

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