The Hindu Business Line : Technocraft Ind plans IPO to raise Rs 87.36 cr

IPO ROUTE: Mr S.K. Saraf (left), MD, Technocraft Industries Ltd, with Mr Anand Rathi, Chairman, Anand Rathi Securities Ltd, at a press conference to announce the public issue of the company in Mumbai on Tuesday. - Paul Noronha

Mumbai , Jan. 9

Technocraft Industries (India) Ltd is coming out with an IPO to raise around Rs 87.36 crore in the upper end of the price band of Rs 95-105 per share. The proceeds will primarily be used to part-finance expansion of its drum closure and yarn divisions.

On offer are 83,20,000 equity shares forming about 25.06 per cent of the fully diluted post-issue paid up capital of the company.

The issue opens for subscription on January 18 and closes on January 23.

About 4,20,000 equity shares are reserved for employees with 79,00,00 shares being the net public issue.

The company is to set up a new plant with a capacity of 9 million sets of drum closures per annum along with a 15 MW captive power plant to reduce power costs.

"Our main growth strategy is to improve our bottom line. The 15 MW power plant would significantly reduce our power costs and improve our bottom line by 10-15 per cent," Mr Navneet Saraf, Director, Technocraft Group, told Business Line.

The company is adding 25,000 thousand spindles to increase the capacity of the yarn division to 61,104 spindles.

Anand Rathi Securities Ltd and Centrum Capital Ltd are lead managers to the issue.