The initial public offering of steel doors and frames manufacturer, Ahlada Engineers Ltd, will open on Monday. The company plans to mobile ₹51 crore through the issue, which will close on September 18.

The issue is for 34.05 lakh equity shares. The price band is at ₹147-150 an equity share. The shares will be listed on the SME Platform of the NSE.

The Book Running Lead Manager to the issue is Saffron Capital Advisors Pvt Ltd while Bigshare Services Pvt Ltd is the Registrar.

Announcing the details at a press conference held here on Saturday, Ch Suresh Mohan Reddy, MD, Ahlada Engineers, “We are planning to raise about ₹51 crore with this IPO. These funds will be used for purchase of machinery, funding of working capital gap, repayment of certain loans and other purposes.”

Ahlada has three manufacturing units, a warehousing unit and an assembly unit and has direct sales in the market in addition to a Master Manufacturing and Supply Agreement with Tata Steel for four years. During the agreement period, the company will manufacture and supply 11.75 lakh doors to Tata Steel.

Initial business

Ahlada, which started commercial operations in 2006 initially manufactured clean room equipment and stainless steel furniture for the pharmaceutical, biotechnology and food industry.

In 2008, Ahlada started manufacturing steel doors. In 2013, it started manufacturing steel doors for the residential sector. It entered into an agreement with Tata Steel in August 2017. The doors are marketed and sold by TSL currently under the brand ‘Tata Pravesh’, through their existing dealer and distributor network.

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