MM Auto Industries Ltd, a manufacturer of precision metallic coil springs, has filed its draft red herring prospectus (DRHP) with securities market regulator SEBI to float its initial public offer (IPO).
The proposed public issue comprises fresh issue of 5,300,000 equity shares which would constitute 42.24 per cent of the fully diluted post issue paid-up equity share capital of the company.
MM Auto is among eight-nine companies that filed documents for maiden public issues. However, it is the first manufacturing firm to apply for an IPO this year.
The Gurgaon-based company would use the proceeds of the fresh issue to expand manufacturing capacity of its plants and to meet long-term working capital requirements, general corporate purposes and public issue expenses.
Promoted by Manoj Singhal and Malti Syngle, 24-year-old MM Auto manufactures precision metallic coil springs, with coiling, grinding, stress relieving, press sections, material handling, packaging and packing, etc.
For the financial year ended March 31, 2014, the company posted revenues of Rs 93.6 crore with net profit of Rs 4.1 crore.
Mefcom Capital Markets Ltd is the book running manager for the IPO.
(Edited by Joby Puthuparampil Johnson)
