The Hindu Business Line : Lokesh Machines files for IPO

LOKESH Machines Ltd has filed draft red herring prospectus with Securities and Exchange Board of India for its forthcoming IPO of 30 lakh equity shares of Rs 10 each for cash at a premium to fund its expansion cum upgradation plans.

The price is to be determined through the 100 per cent book building process. The company's shares are to be listed at the BSE and the NSE.

The three-decade old Hyderabad-based company began operations as a machine tool accessories provider. The company has turned into a Rs 100-crore enterprise carving out a niche in designing, developing and manufacturing special purpose machines (SPMs) and CNC machines for India's automotive and engineering giants.

The company, which expects to raise about Rs 90 crore, also exports machines, to the machine tool hubs of Europe and Japan. Once the clearances are received, it expects to tap the market in later part of February.

Promoted by Mr M. Lokeswara Rao, Lokesh Machines was incorporated in 1983 to manufacture SPMs and has machine manufacturing units near Hyderabad.

According to the prospectus, the IPO is aimed at funding the company's growth plan that encompasses setting up the facility for machining and supply of cylinder blocks and cylinder heads for commercial vehicles.

This expansion plan will also seek to modernise the project and upgrade the existing facilities for manufacture of CNC Machine Tools aimed to cater to the export markets and working capital needs.