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Wednesday, December 05, 2007

Transformers & Rectifiers fixes IPO price band Rs 425-465

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 and specialty transformers, has filed its red herring prospectus (RHP) with the registrar of companies in Ahmedabad for its initial public offering (IPO) of 2,995,000 equity shares of Rs 10 each for cash at a premium to be decided through a 100% book-building process.

The price band has been fixed between Rs 425 and Rs 465 per equity share. The issue has been graded by CARE and has been assigned the "CARE IPO Grade 4" indicating above average fundamentals.

The issue includes a reservation of 150,000 equity shares for eligible employees and a net issue to the public of 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. The equity shares are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.

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. It 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 objects of the proposed Issue are to part finance 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.

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

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