Maharashtra-based Bharat Wire Ropes Ltd will hit the primary market this Friday with its Rs 70 crore initial public offer. The company, which manufactures wire ropes for industries such as power transmission, suspension bridges, oil exploration, mining, defence and railways, will be issuing equity shares of Rs 10 each face value at a price band of Rs 40-45 a share. The company is valued at Rs 200 crore.

In October 2012, Motilal Oswal and Raamdeo Agarwal of the eponymous financial services company bought 6.25 per cent of the company for over Rs 10 crore in their personal capacity through Passionate Investment Management Pvt Ltd at Rs 55 a share for a valuation of Rs 165 crore. Since the IPO is entirely a fresh issue, they still continue to stay invested in the company.

The proceeds from the public issue will be used to build a 66,000 tonnes per annum plant in Chalisgaon, in Maharashtra's Jalgaon district. The project is expected to cost Rs 507.18 crore. The company has tied up with seven banks for funds of up to Rs 330 crore. The company's existing facility at Atagaon has an installed capacity of 12 tonnes a year.

Only 10 per cent of the net issue is reserved for retail investors since the company does not satisfy capital market regulator SEBI's profitability track-record.

The minimum bid lot is 300 equity shares and thereafter in multiples of 300. The issue is open on the three trading days from March 18-22. Intensive Fiscal Services Pvt Ltd and BOB Capital Markets Ltd are the merchant bankers to the issue. The shares are proposed to be listed on the BSE and NSE.

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