Delhi-based auto components maker Sandhar Technologies Ltd has received approval from the capital markets regulator Securities and Exchange Board of India (SEBI) for its proposed initial public offering.
The company had filed its draft red herring prospectus with SEBI for the IPO in September. The offer comprises a fresh issue of shares to raise up to Rs 300 crore and an offer for sale by GTI Capital of up to 5.11 million shares, or over half the stake held by the PE investor.
The PE firm had invested in Sandhar in 2012 by acquiring the stake held by Actis. It later invested more in a rights issue and currently owns a 17.47 per cent stake in Sandhar.
Sandhar was incorporated in 1987 by first-generation entrepreneur Jayant Davar, co-chairman and managing director of the company, who has about 30 years of experience in component manufacturing.
It makes vehicle safety and security systems among other components for automakers, two-wheeler companies and construction equipment manufacturers. It has 29 factories across eight states in India, besides four facilities in Spain, Poland and Mexico.
ICICI Securities, IDFC Securities, IIFL and Jefferies are managing the offer.