Innoventive Industries eyes up to Rs 219.58cr from its IPO

Pune-based multiproduct engineering company, Innoventive Industries, today said it plans to raise up to Rs 219.58-crore from its initial public offer, scheduled to open on April 26.

The issue will close on April 28 for qualified institutional buyers (QIB) to whom up to 50% of the issue will be allotted on a proportionate basis.

The company may consider anchor investors for up to 30% of the QIB portion. Subscription for retail and non-institutional investors will close on April 29. However, the company has not fixed a price-band for the IPO.

"We plan to raise up to Rs 219.58-crore from this IPO. The company will be listed on both the BSE and NSE," Innoventive Industries'' Chairman, Chandu Chavan, told reporters here.

Innoventive is engaged in the business of manufacturing and sale of precision steel tubes, tubular components, auto components, machined components and other steel products.

The company plans use the IPO proceeds to expand its manufacturing facility (Rs 163-crore), repayment of term loans Rs 50-crore and the rest for general corporate purposes.

As on December 2010, the company''s debt stands Rs 270-crore.

"We plan to expand our CEW tubes capacity to 76,000 MTPA from the present 27,000 MTPA by March 2012," he said. The company has six facilities--five in Pune and one in Silvassa.

In February, the private equity arm of Standard Chartered had invested Rs 30-crore in the firm.Axis Bank and Avendus Capital are the book-running leading managers to the issue.