The Hindu Business Line : Uma Precision IPO soon

Precision engineering solution provider Uma Precision Ltd is in an expansion mode and is entering the capital market later this month with an initial public offering of 40 lakh equity shares, including the one lakh reserved for employees, to part finance five new projects.

The Pune-based manufacturer of precision assemblies, systems and machined parts for auto and electrical industries expects to mop up Rs 91 crore through the issue. This will partly fund setting up a facility at Uttarakhand to manufacture auto components, a cold forging plant at Waluj, Aurangabad, a foray into backward and forward integration and a plan to acquire 45 CNC machines at Supa.

Elaborating on forthcoming projects, Mr Rajendra Kankaria, Managing Director and CEO, said that UPL had invested Rs 10 crore in the Uttarkhand plant to make components for Tata Motors and Bajaj Auto. The plant will go on stream in December.

Coating plants

The company has also signed a licensee agreement with Doerken MKS Systems GmbH & Co KG for setting up two Delta Surface coating plants at Koregaon Bhima and Bangalore. The environmentally-friendly coating, and even manufacturing the required component could be a new business, Mr Kankaria said adding, “Our long term focus is job coating.”

Uma Precision has seven manufacturing plants at Pune, Aurangabad, Hosur, Ahmednagar and Bangalore. It manufactures 1,400 components, 70 per cent of which are for use in the auto industry. Its clients include the Kuwait-based Al Alia, Holden in Australia, and TM, BAL, Piaggio and Cararro in India. The compnay had a turnover of Rs 123 crore during the 06-07 fiscal, including Rs 14 crore through exports, and a net profit of Rs 7 crore.