Precision Camshafts Limited IPO Opens 27th Jan

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Precision Camshafts Limited IPO Update:

Opens: 27-Jan-2016
Closes: 29-Jan-2016

Price Band: INR 180 to INR 186
Bid Lot:  80 Equity Shares

Issue Size: INR 405 Crs at lower band & INR 410 at upper band

Allocation: QIB 50%, HNI 15% & Retail 35%

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Auto component producer Precision Camshafts has received the market regulator SEBI’s go ahead for its IPO. The Solapur-based company supplies over 150 varieties of camshafts for passenger vehicles, tractors, light commercial vehicles and locomotive engine applications from its twin manufacturing facilities in Solapur, Maharashtra. The company specializes in the small and mid-size passenger vehicle segment and counts GM, Hyundai, Mahindra, Escorts, Tata, Maruti Suzuki among its clients.

Precision Camshafts’ IPO will involve a fresh issue of equity shares worth INR240 crore and an offer for sale of up to 86.4 lakh equity shares by existing shareholders. Yatin Shah, Suhasini Shah, Jayant Aradhaye, and Cams Technology Limited are among the investors looking at partially selling their shareholding in the company. Yatin Shah, Suhasini Shah, and Cams Technology Limited are among the promoter and promoter group of Precision Camshafts. The company plans to use IPO proceeds to establish a machine shop for ductile iron camshafts at the company’s export oriented unit in Solapur, Maharashtra and for other general corporate purposes. SBI Capital Markets Ltd, HDFC Bank and India Infoline Ltd will be managing the issue.

The company operates an export oriented unit (EOU) and a domestic unit in Solapur. The EOU unit consists of four foundries and two machine shops while the domestic unit consists of one foundry and one machine shop. Precision Camshafts’ total manufacturing capacity as on December 2014 stood at 13.38 million camshaft castings per annum from the foundries and 2.22 million machined camshafts per annum from the machine shops.

Beyond India, it has two joint ventures with Ningbo Shenglong Powertrain Company Limited in China. The machining venture – Ningbo Shenglong PCL Camshafts Company Limited – started production in April 2013 while the foundry venture’s plant is under construction.