Zephyr Peacock-backed Pennar Engineered Buildings gets SEBI nod for IPO

Pennar Engineered Buildings Systems Ltd (PEBS), a subsidiary of Hyderabad-based Pennar Industries Ltd, has obtained approval from the capital markets regulator Securities and Exchange Board of India for its proposed initial public offer (IPO).

The company had filed its draft red herring prospectus (DRHP) with SEBI in March to float the proposed public issue, which comprises fresh issue of equity shares to raise up to Rs 58 crore (approximately $9.2 million), besides an offer for sale which would lead to part-exit for its private equity investor Zephyr Peacock.

Since January this year, several other companies like Mumbai-based firm S.H. Kelkar & Co. Pvt Ltd, brokerage firm SMC Global, engineered systems and solutions manufacturer Uniparts India, power infrastructure service provider Power Mech Projects, Navkar Corporation and Precision Camshafts have also got SEBI's green signal for proposed IPOs.

Incorporated in 2008, PEBS delivers engineered steel building solutions for commercial, industrial, logistics, aviation, agriculture, sports stadia and other sectors. It provides design, manufacture, supply and installation of custom designed steel building systems and building components.

PEBS is part of Pennar Group of Companies which consists of Pennar Industries, Pennar Chemicals and Saven Technologies. 

It has one manufacturing facility located at Anakapalli in Medak district in the new state of Telangana. The facility has a production capacity of 90,000 MT per annum of fabricated structural metal products a year.

The company has a non-exclusive technical know-how licensing arrangement with the US-based NCI Group Inc for supply of standing seam roofing panel system in India under the brand name ‘Double Lok.

Zephyr Peacock had invested Rs 50 crore ($9.16 million then) in the company in April 2013, a third of which was through stake purchase from the promoters. It is now selling a part of its holding.

Post the offer-for-sale, it would continue to hold around 3 million convertible preference shares.

Motilal Oswal, Axis Capital and Karvy are the bankers for the proposed IPO.

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