Craftsman Automation approves QIP of up to Rs 1,200 crore, floor price at Rs 4426.11 per share

Craftsman is a major player in the machining of cylinder blocks and heads in the M&HCV segment

Craftsman Automation has approved the raising of up to Rs 1,200 crore through a qualified institutions placement on June 18 with a floor price of Rs 4426.11 per share, the company informed stock exchanges. The floor price is at a discount of little about 7 percent from Tuesday's closing price.

During a board meeting in April, the company had announced plans of an initial investment of Rs 150 crore to set up a greenfield plant in Bhiwandi, Rajasthan. The new plant is expected to aim to unlock the growth potential of the company's three major verticals - powertrain, aluminium products and industrial engineering.

The precision manufacturing company had in April said that the upcoming facility at Bhiwadi was a 'strategic investment for us to capitalise on the large and growing business opportunities in the North'.

“The greenfield unit, together with our unit at Faridabad, will allow us to service our customers better and faster, strengthen our presence in North India and emerge as a critical business driver over the coming years,” S Ravi, chairman and managing director at Craftsman Automation, had said in April.

Craftsman is a major player in the machining of cylinder blocks and heads in the M&HCV segment, and is expected to benefit from the resilient demand for commercial vehicles and industrial segments.

The outlook for copper and alumiunium demand in India too is projected to be robust, given its rising usage in electrification, cookware and automobiles sector.