Commercial Engineers files IPO papers with SEBI
Commercial Engineers and Body Builders Company has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offer (IPO).
The issue consists of a fresh issue by the company aggregating upto Rs 170 crore and an offer for sale of 1,698,430 equity shares by New York Life Investment Management India Fund (FVCI) II LLC and Commercial Automobiles Private Limited.
Its business comprises of manufacturing vehicle bodies for commercial vehicles, refurbishment of wagons and manufacture of components for wagons, coaches and locomotives for the Indian Railways.
Kailash Gupta, Ajay Gupta and NYLIM hold 29.48%, 26.30% and 23.30% stake in the company.
Funds raised by offering fresh issue will be used for capital expenditure for the railway project; prepayment of identified loan facilities and general corporate purposes.
For the period of nine months ended on December 31, 2009, it has reported profit after tax of Rs 10.65 crore on total income of Rs 111.21 crore. It has debt of Rs 47.84 crore on its books till the same period.
The book running lead managers to the issue are ICICI Securities Limited and Edelweiss Capital Limited. Karvy Computershare Private Limited is the registrar to the issue.