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Tuesday, April 04, 2006

Lokesh Machines IPO opens on April 7

Lokesh Machines is entering the capital market on April 7, 2006 with an initial public offer, IPO, of 30 lakh equity shares of Rs 10 each to fund its expansion cum upgradation plans, through 100% book building process.

The issue would constitute 25.47% of the fully diluted post issue paid up capital of the company.

The issue will close on April 13, 2006 and the price band has been fixed between Rs 130 and Rs 140.

The three-decade old Hyderabad-based company began operations as a machine tool accessories provider. The company has turned into a Rs 100 crore (Rs 1 billion) enterprise carving out a niche in designing, developing and manufacturing special purpose machines, SPMs and CNC machines for India's automotive and engineering giants.

The IPO is aimed at funding the company's growth plan that encompasses setting up the facility for machining and supply of cylinder blocks and cylinder heads for commercial vehicles.

This expansion plan will also seek to modernise the project and upgrade the existing facilities for manufacture of CNC Machine Tools aimed to cater to the export markets and working capital needs.

The company is proposed to be listed on the BSE and the NSE.

Karvy Investor Services and UTI Securities are the book running lead manager and Karvy Computershare private is the registrar to the issue.


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