Sarabjit Kaur
Auto component maker Benara Bearings and Pistons plans to raise up to Rs 33.5 crore through its initial public offering (IPO) and has fixed a price band of Rs 60 to Rs 63 per share for the same.
The proceeds of the issues, which will open on 20 March and close on 22 March, will be utilised in expansion of the company’s distribution network, setting up retail stores for parts and capex for solar business subsidiary, Benara Bearings and Pistons managing director Vivek Benara on Thursday said.
“We have fixed the price band for our IPO at Rs 60 to Rs 63 a share. The IPO size is Rs 33.5 crore on the higher price band. The fresh issue will be of 53,16,000 shares,” he said in Mumbai.
Of the total proceeds, Rs 10.5 crore will be used as working capital for spare parts business and another Rs 7.5 crore in opening of retail stores for spare parts, he said, adding that in the first year, some 10 such stores are expected to come up.
“We are also looking at margin money for our solar business for subsidiary company, which will be to the tune of Rs 5 crore and rest of the funds for corporate purposes,” Benara said.
The company, with two manufacturing facilities in Agra, makes engine bearings, bushes, pistons, piston pin, piston rings, cylinder liners and sleeves and engine valves.
Besides, it is also engaged into marketing of products like ball bearings, spark plugs besides valve seals and batteries (motorcycle, inverter, e-rickshaws) under its brand which are sourced through third-party contract manufacturing.
The company markets its product in original equipment manufacturer (OEM) and replacement market. It also focuses on two-wheeler parts replacement market.
On a standalone basis, the OEM and the parts replacement business contributed Rs 4.6 crore and Rs 72.6 crore, respectively, to the company’s overall revenue during the previous financial year.
Pantomath Capital Advisors is the lead manager for the issue, while Bigshare Services is the registrar.
The shares of the company are proposed to be listed on the small and medium enterprises platform of the Bombay Stock Exchange.
