Metalman Auto Limited Files Draft Red Herring Prospectus with SEBI for IPO

Metalman Auto Limited (“Metalman” or “The Company), has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”).

The Company is a one stop shop for sheet metal, tubular fabrication, metal finishing and assembly of components for original equipment manufacturers (“OEMs”) in the automotive and non-automotive sectors.

The Company plans to raise funds through initial public offering of Equity Share Capital (face value ₹ 2 each) comprises of fresh issue of Equity Shares aggregating up to  ₹ 3,500 million [₹ 350 crore] and offer for sale up to 12,636,162 equity share by Selling Shareholders. (The “Total Issue Size”).

The Company proposes to utilize the Net Proceeds towards funding – (i) Part-financing the capital expenditure towards procurement of plant and machinery at Pithampur manufacturing unit estimated amount to be ₹ 250 million [₹ 25 crore] to be deployed in FY 2025 and FY 2026; (ii) Repayment/pre-payment, in part or full of certain borrowings of the Company and Metalman Micro Turners estimated amount to be ₹ 2,400 million [₹ 240 crore] to be deployed in FY 2025 and balance amount towards general corporate purposes. (The “Object of Issue”)

The Equity Shares that will be offered through the Red Herring Prospectus are proposed to be listed on the BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”). (The “Listing Details”Axis Capital Limited, ICICI Securities Limited and Motilal Oswal Investment Advisors Limited are the Book Running Lead Managers to the issue. (The “BRLMs”)

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