The Hindu Business Line : Autoline Ind plans Rs 75-cr IPO

Autoline Industries Ltd will enter the capital markets with an initial public issue of equity shares aggregating Rs 75 crore in the price band of Rs 200-225 per equity share of face value of Rs 10 each through 100 per cent book building process. The issue opens on January 8 and closes on January 12.

Autoline provides design-engineering-manufacturing service to the automobile industry in Pune.

The company will use the IPO fund for the modernisation of existing manufacturing facilities at Chakan, Pune - unit I, setting up of a new manufacturing unit at Chakan (unit - II), and expand UAE operations including setting up of a manufacturing facility among others.

Of the total issue, 50 per cent will be allocated to qualified institutional buyers of which 5 per cent will be reserved for mutual funds on a proportionate basis. Non-institutional investors will receive 15 per cent and the remaining 35 per cent will be allocated to retail individual investors.

The company will dilute 33 per cent of its equity capital at the lower end of the price band and 31 per cent at the higher end, post issue.

The company has recorded a sales turnover of Rs 118.3 crore and net profit of Rs 7.48 crore for the eight months ended November 2006.

BOB Capital Markets Ltd is the book running lead manager to the issue and Enam Securities Pvt Ltd is the syndicate member.

The company supplies complex sheet metal assemblies and subassemblies to Bajaj Auto, Tata Motors, Kinetic Engineering, Mahindra and Mahindra, Walker Exhaust and Fiat India and is the single source supplier of load bodies for Tata Ace mini truck.

The company entered into an arrangement with Stokota Engineering, the Indian subsidiary of Stokota NV, Belgium last year for supply of tippers, tipper trailers, tankers, cement bulkers, garbage extractors and so on.

It has set up a joint venture company in UAE to manufacture brake shoes, wheel rims, etc. and should be operational by the end of this fiscal.