Ardee Engineering raises over Rs 15 crore in second pre-IPO round at Rs 2,200-crore valuation

Ardee Engineering IPO news

Telangana-based engineering solutions provider Ardee Engineering has mobilised over Rs 15 crore in the second pre-IPO round earlier this week at a valuation of Rs 2,200 crore.

"....has undertaken a second tranche of a pre-IPO placement of 3.53 lakh shares at an issue price of Rs 425 per share for Rs 15.007 crore by way of private placement," Ardee in its notice to investors on November 12 said.

The Board and shareholders have approved the second pre-IPO placement on November 3 and 5, respectively, followed by the signing of share subscription agreements on November 5 with Delta Innovative Research LLP and Century Flour Mills.

The company that provides pre-engineered buildings (PEB), material handling systems (MHS) and engineering services has allotted 3.06 lakh shares (0.76 percent of pre-offer paid-up equity) worth Rs 13.005 crore to Delta Innovative Research, and 47,100 shares (0.12 percent stake) worth Rs 2.002 crore to Century Flour Mills.

This is a part of Rs 100 crore pre-IPO placement planned by Ardee at the time of filing preliminary papers.

In the first pre-IPO round, the company in July this year raised Rs 17.43 crore by issuing 4.1 lakh shares at same issue price of Rs 425 per share to five investors - Atluri Kishore Dutt, Padma Veerapaneni, Yerra Umanadh, Gautam Nimmagadda, and Vegesana Narasaraju.

Incorporated in 2008, Ardee Engineering filed draft document with the SEBI for IPO in March this year, which was approved later by the capital markets regulator in August.

The company proposed to raise Rs 500 crore via new shares, while promoter Chandra Sekhar Moturu will be offloading shares worth Rs 80 crore via offer-for-sale.

Ardee Engineering that competes with listed peers like Pennar Industries, Everest Industries, Capacite Infraprojects, PSP Projects, Ahluwalia Contracts (India), ISGEC Heavy Engineering, and Interarch Building Products will spend Rs 279.6 crore of fresh issue proceeds for setting up two new manufacturing facilities at Seetharampur (Telangana), and Rs 44.8 crore for setting up a new integrated manufacturing facility at Parawada, Andhra Pradesh.

Further, Rs 65 crore will be used for repayment of certain outstanding borrowings, and the remainder funds for general corporate purposes.

IIFL Capital Services, and JM Financial will act as merchant bankers for the Ardee Engineering IPO.