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The Hyderabad-based company also plans to increase the manufacturing capacity of pre-engineered steel buildings by setting up a facility in Rajasthan or Gujarat, mainly to cater to the north Indian market.
The Hyderabad-based company also plans to increase the manufacturing capacity of pre-engineered steel buildings by setting up a facility in Rajasthan or Gujarat, mainly to cater to the north Indian market.

PEBS to launch IPO on 25 August

The issue, with a price band fixed at `170 to `178 apiece, closes on 27 August

Mumbai: Building systems solutions provider Pennar Engineered Building Systems Ltd (PEBS) plans to raise 156 crore through an initial public offer to repay certain working capital facilities and expand design and engineering services.

The issue, with a price band fixed at 170 to 178 apiece, opens on 25 August and closes on 27 August. “There is a huge potential for the pre-engineered building systems mainly due to various initiatives taken by government in various sectors like infrastructure, affordable housing, agriculture, industrial development, among others.

“We plan to raise 156 crore not only to repay our working capital facilities but also to expand our business to meet the growing demand," PEBS managing director P.V. Rao told reporters in Mumbai on Tuesday.

PEBS is engaged in designing, manufacturing, supply and assembly of custom designed building systems and its products include pre-engineered buildings, solar module mounting structures, cold form buildings and structural steel products. He said the company is looking at organic as well as inorganic growth and plans to increase its share from international sales to nearly 10-16% by FY18.

“We are present in the Middle East market and at some regions in the African market as well. But we have realised that the African market is yet untapped and we want to expand our presence there.

“We have been providing our engineering services in these markets. We will also export our products in these markets. In the next two years, by FY18, we expect the contribution from international sales to increase to 10-15 per cent from the current 2-3 per cent," Rao said.

The Hyderabad-based company also plans to increase the manufacturing capacity of pre-engineered steel buildings by setting up a facility in Rajasthan or Gujarat, mainly to cater to the north Indian market.

“Currently, we have a manufacturing facility in Hyderabad with a capacity of 90,000 tonnes which is catering to western and southern markets.

“But we now want to expand our presence in northern markets as well and so we plan to set up a facility of around 30,000 tonne in either Rajasthan or Gujarat, wherever we get the necessary land," Rao said.

The merchant bankers for the issue are Motilal Oswal, Axis Capital, Karvy Investment Banking and Karvy Computershare.

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