Telangana-headquartered engineering solutions provider Ardee Engineering, specialising in pre-engineered buildings, electro-mechanical and civil works, has received approval from the SEBI to float Rs 580-crore IPO.
The IPO is a mix of fresh issuance of shares worth Rs 500 crore, and an offer-for-sale of Rs 80 crore worth shares by promoter Chandra Sekhar Moturu, as per the DRHP filed in March this year.
The capital markets regulator has issued observation letter on the draft document of Ardee Engineering last week. With the receipt of observation letter, the company can launch its IPO (Initial Public Offering) within the next one year.
The company that competes with listed entities like Pennar Industries, Everest Industries, Capacite Infraprojects, PSP Projects, Ahluwalia Contracts, ISGEC Heavy Engineering, Interarch Building Products may consider raising funds up to Rs 100 crore in pre-IPO round.
If the company manages to conclude the pre-IPO placement, accordingly the said amount will be reduced from the fresh issue.
Click Here To Read All IPO News
Ardee Engineering plans to utilise Rs 279.63 crore of fresh issue proceeds for setting up two new manufacturing facilities at Seetharampur, Telangana, and Rs 44.84 crore for new integrated manufacturing facility at Parawada, Andhra Pradesh.
Further, Rs 65 crore will be used for repayment of borrowings, and the remainder funds for general corporate purposes.
The book running lead managers handling the Ardee Engineering IPO are IIFL Capital Services, and JM Financial.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
