Gujarat-based Rotomag Enertec, backed by Mauritius-based BanyanTree Growth Capital, has approached the capital markets for fundraising via an initial public offering. It has filed a draft red herring prospectus with the SEBI on September 26.
The company proposed to mobilise Rs 500 crore by issuing new shares, while existing shareholders, including promoters and investor BanyanTree, will be selling up to 2.4 crore shares via the offer-for-sale route.
As a part of the fresh issue component, Rotomag may consider raising funds up to Rs 100 crore in a pre-IPO round, i.e., before the filing of the red herring prospectus with the Registrar of Companies to launch IPO.
Promoters' shareholding in the company at the time of filing of preliminary papers with the SEBI was 75.59 percent. And the remainder 24.41 percent shares are owned by public shareholders, including BanyanTree Growth's 17.58 percent stake.
BanyanTree Growth Capital became a shareholder in the Rotomag through allotment of equity shares and compulsory convertible debentures (CCDs) in September 2015.
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The company manufactures direct current (DC) motors, solar-powered pumps and photovoltaic string inverters through its six facilities in India, focusing on concept design, assembly and finished product testing.
Its products and solutions are utilised in several industries such as plastic processing, textile, pumps, wind energy, construction equipment, material handling, floorcare, power distribution, hoist and winch, and railways.
Rotomag Enertec proposed to utilise fresh issue proceeds for redemption of non-convertible debentures, working capital requirements, and general corporate purposes, while the offer-for-sale money will go to the selling shareholders.
On the financial front, the company has reported a profit of Rs 167.5 crore for the year ended March 2025, growing sharply by 134.7 percent compared to Rs 71.4 crore in the previous year. Revenue during the same period increased by 82.2 percent to Rs 1,265 crore, up from Rs 694.2 crore.
The merchant bankers handling the Rotomag Enertec IPO are Equirus Capital, CLSA India, and JM Financial.
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