Bombay Coated and Special Steels, the Mumbai-based steel processing company, has raised Rs 7.92 crore in pre-IPO round on October 28, at a valuation of Rs 480.5 crore, before filing the Red Herring Prospectus (RHP) with the Registrar of Companies for initial public offering launch.
The company in its notice to investors said the Board had approved the pre-IPO placement via private placement in one or more tranches on October 7, followed by the nod from shareholders on October 8.
Subsequently, "the allotment of 9,00,091 equity shares in relation to the pre-IPO placement to certain investors was made pursuant to the resolution of the IPO committee of the Board dated October 28," Bombay Coated said.
The company has allotted the above-mentioned shares to 12 investors at Rs 88 per share, which if assumes as an upper price band of its upcoming IPO, the valuation stands at Rs 480.48 crore.
Manish Dhirajlala Kansara, Moneyplant SME Fund and Priti Suresh Shah were the major buyers in pre-IPO round, each acquiring shares worth around Rs 1 crore, followed by Rural Engineering Company which picked 1 lakh shares for Rs 88 lakh.
After closing pre-IPO round, Bombay Coated that specialises in processing steel coils into processed steel products has reduced its fresh issue size by 9,00,091 lakh shares to 1,40,99,909 shares from 1.5 crore shares planned earlier as per DRHP filed on September 26 this year.
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The revised IPO size could be around Rs 124.08 crore if the issue price may get finalised at Rs 88 per share.
The company that supplies processed steel products to OEMs (original equipment manufacturers) and ODMs (original device manufacturers) in the home & commercial appliances and general engineering sectors proposed to utilise IPO proceeds for repaying debt, acquisition of capital equipment under existing lease arrangements with Siemens Financial Services, and general corporate purposes.
The merchant banker handling the Bombay Coated and Special Steels IPO is Smart Horizon Capital Advisors.
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