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Wednesday, August 23, 2006

KEW Ind IPO opens on Aug 28

KEW Industries, a manufacturer and supplier of defence stores and automobile components for OEMs, will enter the capital market on August 28, 2006 with a fixed price public issue of 70,00,000 equity shares of Rs 10 each at a price of Rs 30 aggregating to Rs 21 crore (Rs 210 million).

The issue closes on September 01, 2006.

The company intends to utilize the proceeds of the issue for modernization and expansion of manufacturing facility and expansion of research and development facilities. It is targeting to increase its presence across its core business areas of manufacturing automotive components. The growth witnessed by automotive sector has also created significant opportunities for auto component manufacturers, which encourages expansion and investment.

KEW Industries, enjoying the reputation of a known manufacturer of automotive components and shell bodies for Ministry of Defence, has well established its brand for product range in the domestic and export markets. It manufactures SG Iron and Cast Iron products for domestic and export markets.

Its major client portfolio includes Ashok Leyland, Tata Motors, Punjab Tractors, Indian Ordinance Factories under Ministry of Defence, and Rail Coach Factory at Kapurthala.

With the change in domestic and international market scenario, KEW has started diversifying its concentration towards automobile sector. The company is exporting auto components to CBM HPA in Italy and Defontaine in France.

The company's business strength can be judged from the fact that its total income has jumped from Rs 30.13 crore (Rs 301.3 million) in FY 2002 to Rs 39.64 crore (Rs 396.4 million) in FY 2006 and profit after tax during the same period has shot up from Rs 1.85 crore (Rs 18.5 million) to Rs 2.99 crore (Rs 29.9 million).

Chartered Capital and Investments and Keynote Corporate Services are the lead managers to the issue and Karvy Computershare is the registrar.

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