The Hindu Business Line : Hilton Metal plans public issue to raise Rs 38 cr

Mr Yuvraj Malhotra, CMD, Hilton Metal Forging Ltd, with Mr Joe Mckey, Director, at a press conference to announce the company's IPO in Mumbai on Tuesday - Paul Noronha

Mumbai, April 10

Hilton Metal Forging Ltd, specialising in forged items for various sectors, will enter the capital market with a public issue of 54.5 lakh equity shares of Rs 10 each at a premium of Rs 70 per equity share.

The issue will open on April 18 and close on April 24. The company will offer 5,000 equity shares to Centrum Capital Ltd (a lead manager to the issue) at Rs 70 each, with the net issue to the public being 54.45 lakh equity shares.

The public component will constitute 43.8 per cent of fully diluted post issue paid-up capital of the company. The company plans to raise about Rs 38.15 crore to partfund the installation of additional plant and machinery in Thane district, setting up of new buildings there for in house die shop/tool room, heat treatment shop and laboratory to manufacture largesized components for the company's clients.

The expansion will lift Hilton's existing manufacturing capacity from 11,100 tonnes per annum to 24,900, Mr Yuvraj Malhotra, Chairman and Managing Director, told newspersons on Tuesday.

In addition, State Bank of Hyderabad has chipped in with a Rs 10-crore term loan, Mr Malhotra added.

ICRA has assigned "IPO Grade 2" to the public issue. Around 10 per cent of the issue will be allotted to qualified institutional buyers; of the remaining, 50 per cent each will be offered for retail and non-retail investors. The company recorded a total income of Rs 45.31 crore for the nine months ended December 2006 and a net profit of Rs 3.74 crore.

Centrum Capital Ltd and SREI Capital Markets Ltd are the lead managers to the issue; registrar for the issue is Sharex Dynamic (India) Pvt Ltd.

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