Bangalore-based Maini Precision Products Pvt Ltd has filed its draft herring prospectus with the capital markets regulator Securities and Exchange Board of India for its initial public offering.
The firm had raised funding from AIG Capital (now Pinebridge) in 2005 and provided an exit to the PE firm in 2012. However, the deal was not fully completed due to some pending clearances and Pinebridge continues to own a 0.58 per cent stake, though this is proposed to be bought back.
The IPO marks another Pinebridge-backed firm going public. Uniparts and Narayana Hrudyalaya are other two firms backed by the PE firm that are in the queue to float their IPOs.
Here's a snapshot of the IPO
* The IPO comprises a fresh issue of shares to raise up to Rs 50 crore (about $7.6 million) and an offer for sale of up to 3 million shares by its promoters – Sudarshan Kumar Maini, Reva Maini, Sandeep Kumar Maini, Gautam Maini and Chetan Kumar Maini.
* Bankers: ICICI Securities and IIFL Holdings.
Use of proceeds
* Of the proceeds of the fresh issue, Rs 16.9 crore would be used to construct a new building for a factory at Nelamangala, Rs 12.4 crore to buy machinery, Rs 10 crore to pre-pay debt, and remaining for general corporate purposes.
* Incorporated in 1973, Maini Precision, part of the Maini Group, makes high precision components and assemblies, catering to a global clientele in the automotive, industrial and aerospace sectors. Maini Group was also behind the electric car firm Reva, which is now owned by Mahindra & Mahindra.
* The company's main products are precision components, machined castings and forgings, fuel filters and sub-assemblies used in engines, transmissions, fuel injection, turbo chargers, and steering and chassis for passenger and commercial vehicles. It makes precision components, machined castings and forgings for other industries. For the aerospace sector, it makes precision components and sub-assemblies used in aero structures, aero engines and aircraft systems.
* It has a long-term relationships with several global tier I customers and OEMs. Some of its key clients include Bosch, Eaton, and Stanley Black & Decker, apart from 23 customers in the aerospace sector.
* During the financial year 2015, the company supplied components to 86 customers in automotive and industrial sectors. This comprises 60 customers catering to passenger and commercial vehicles and 26 in other industries.
* It has six manufacturing facilities and one storage facility in industrial zones in and around Bangalore, Karnataka, with a total area of about 136,498 sq. ft. and built-up area of 5,300 sq. ft. respectively.
* For the financial year 2015, 2014 and 2013, the company's revenue from operations was Rs 279.8 crore, Rs 258.3 crore and Rs 195.3 crore, respectively. However, the firm's net profit declined marginally from Rs 11.9 crore in FY14 to Rs 10.6 crore for the year ended March 31, 2015.
Bulk of the revenue comes from supplying components to customers catering to the automotive and industrial sectors, especially passenger and commercial vehicles.
Last fiscal, it earned 55.55 per cent of its revenue from customers outside India and the rest from India.