Bothra Metals to raise Rs 12 cr thru BSE-SME platform

Our Bureau Updated - November 20, 2017 at 07:14 PM.

Bothra Metals and Alloys plans to list on the small and medium enterprises (SME) platform of BSE by offloading 48.84 lakh equity shares at Rs 25 a share. The company will raise Rs 12.21 crore which will be used to meet the working capital for its newly commissioned plant at Sangli in Maharashtra.

The issue, which includes fresh equity and offer-for-sale by promoters, opens on March 14. The minimum application and trading lot will be 6,000 shares and in multiples thereof. There will be compulsory market making for three years post-listing.

Post-issue holdings

Post-issue the promoters will hold 73.62 per cent stake, public will have 25.02 per cent and the rest will be used for market making by registered market makers. Of the entire IPO, 50 per cent has been reserved for retail applicant.

Sunder Bothra, Managing Director, Bothra Metals and Alloys said the company preferred the SME exchange just to save on the cost which was restricted to Rs 30 lakh.

“We did not want to incur huge cost by way of conducting road shows, advertising and other expenses as our fund requirement is limited. According to SEBI norms, we can migrate to the mainline platform after two years,” he said.

The company has three aluminium extrusions and ingots manufacturing plants in Himachal Pradesh, Gujarat and Maharashtra with the total capacity of 15,000 tonnes a year.“The potential for growth looks brighter in Sangli as we have substantial surplus land after providing for the new aluminium plant. We own 4.5 acres in Sangli,” said Bothra.

>suresh.iyengar@thehindu.co.in

Published on March 7, 2013 16:53