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Thursday, October 04, 2007

Transformers and Rectifiers files DRHP with SEBI

Transformers and Rectifiers (India), one of the major players in the Indian market manufacturing a wide range of transformers ranging from power generation, transmission and distribution transformers, industrial transformers and a wide range of speciallity transformers has filed its draft red herring prospectus (DRHP) with the Securities & Exchange Board of India (SEBI) to enter the capital market with its initial public offering of equity shares.

The objects of the proposed issue is the setting up of the proposed greenfield manufacturing facility at Moraiya, near Ahmedabad, Gujarat, for manufacturing transformers and to part-finance incremental working capital requirements.

The equity shares are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.

Enam Securities Private Limited is the sole book running lead manager to the Issue.

The company proposes to issue 2,995,000 equity shares of Rs 10 each for cash at a premium to be decided through a 100% book-building process. The issue includes a reservation of 150,000 equity shares for eligible employees and the net issue to the public will be 2,845,000 equity shares. The issue will constitute 23.17% of the fully diluted post-issue paid-up capital of the company and the net issue will constitute 22.01% of the fully diluted post issue paid-up capital of the company.

Out of the total equity shares being offered in the issue, at least 60% of the net issue shall be allocated to qualified institutional buyers (QIBs) on a proportionate basis out of which 5% shall be available for allocation on a proportionate basis to Mutual Funds only. The remainder shall be available for allotment on a proportionate basis to all QIBs including Mutual Funds, subject to valid bids being received from them at or above the issue price.

If at least 60% of the net issue cannot be allocated to QIBs, then the entire application money will be refunded forthwith. Further, up to 10% of the net issue would be allocated to Non-Institutional Bidders and up to 30% of the Net Issue would be allocated to Retail Individual Bidders on a proportionate basis, subject to valid Bids being received from them at or above the Issue Price. Further, upto 150,000 Equity Shares shall be available for allocation on a proportionate basis to the eligible employees.

The company manufactures a wide range of transformers while focusing on quality, timely delivery and customization. It has developed its products based on its in-house design and engineering capabilities, and is perhaps one of the few players to have developed this wide range without any third party technical collaboration or assistance. Its core competencies are its in-house technical and design expertise, skilled workforce and well equipped manufacturing facilities which enables it to manufacture a wide range of transformers, to meet diverse client requirements.

The company manufactures transformers upto 220 kV Class, having an installed capacity of 7,200 MVA transformers per annum. It currently operates through two manufacturing units, located at Changodar, near Ahmedabad and Odhav, in Ahmedabad, both in Gujarat.

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