Mumbai-based speciality wire ropes manufacturing firm Bharat Wire Ropes Ltd has filed its red herring prospectus with the capital markets regulator Securities and Exchange Board of India (SEBI) for its initial public offering (IPO).
The company is planning to raise Rs 70 crore ($10.3 million) through a fresh issue of up to 700 million equity shares by promoters. The price band of the offering is yet to be finalised. The issue will open for subscription on March 18 and close on March 22.
The company intends to use the IPO proceeds primarily for setting up a factory with a capacity of 66,000 metric tonnes per annum to make wire ropes at Chalisgaon, Maharashtra. Part of the proceeds would also be used for general corporate purposes and issue-related expenses.
Bharat Wire follows auto-parts maker Precision Camshafts Ltd, staffing firm TeamLease Services Ltd and antivirus software maker Quick Heal Technologies Ltd in launching an IPO this year. A number of other companies including thyroid testing company Thyrocare Technologies Ltd, microlender Ujjivan Financial Services Ltd and oncology chain HealthCare Global have also filed papers with SEBI for IPOs.
Bharat Wire posted profit after tax of Rs 1.97 crore on revenue of Rs 76.72 crore for the financial year 2014-15, according to the restated financials.
The company was set up in 1986. It makes wire ropes, structural strands, slings and wires used in a range of sectors including general engineering, fishing, elevators, cranes, power transmission, suspension bridges, oil exploration, shipping, mining, defence and railways.
The company was founded by the Shah Group. In 2010, it was purchased by Gaji Mercantile Pvt Ltd. It has a steel wire ropes manufacturing facility with an installed capacity of 12,000 metric tonnes a year, which is located at Atgaon.
Bank of Baroda and Intensive Fiscal Services are the book running lead managers for the issue.
