The Hindu Business Line : Uma Precision files for IPO

Pune April 23 Uma Precision Ltd has filed its draft red herring prospectus with SEBI for entering the capital market with its initial public offering (IPO) of 40 lakh equity shares of Rs 10 each for cash at a premium, including an employee reservation of one lakh equity shares.

The issue will be conducted through 100 per cent book building process and the net issue to the public would constitute 27.12 per cent of the fully diluted post-Issue paid - up capital of the company.

An official release of the company has stated that up to 50 per cent of the net issue to the public would be available for allocation on a proportionate basis to qualified institutional buyers (QIBs). At least15 per cent of the net offer shall be available for allocation on a proportionate basis to non-institutional bidders and 35 per cent for retail bidders.

The book running lead manager is Karvy Investor Services Ltd. The shares will be listed at the Bombay Stock Exchange Ltd and National Stock Exchange of India Ltd. It noted that the objective is to part-finance the new upcoming projects of bright bar manufacturing, cold forging, CNC Machines, Delta Industrial Surface Coating Plant and New Manufacturing plant at Pant Nagar, Uttaranchal. The cost of the project would be approximately Rs 91.36 crore, it said.

Uma Precision Ltd is a manufacturer and exporter of precision assemblies, systems and machined parts for auto and electrical industry and has 1,000 different components for auto and electrical industries. It has five plants, at Pune, Ahmednagar and Aurangabad in Maharashtra and Hosur in Tamil Nadu.