Ardee Engineering Files Draft IPO Papers To Raise Rs 580 Crore
Ardee Engineering shares are proposed to be listed on the National Stock Exchange of India and BSE.
Ardee Engineering Ltd. on Friday filed its preliminary papers with the Securities and Exchange Board of India to raise funds via an initial public offering. The public offer will include a mix of fresh issue of shares worth Rs 500 crore and an offer-for-sale up to Rs 80 crore by promoter selling shareholders.
The equity shares are proposed to be listed on the National Stock Exchange of India Ltd and BSE Ltd. The company, in consultation with the BRLMS, may consider an issue of equity shares aggregating up to Rs 100 crore as pre-IPO placement. If the pre-IPO placement is completed, the amount raised under the pre-IPO placement will be reduced from the fresh issue.
Chandra Moturu is the promoter of the company offloading shares in the offer for sale.
JM Financial Ltd., and IIFL Capital Ltd. are the book-running lead managers for the issue and Bigshare Services Pvt. will be the registrar of the issue.
Proceeds from the fresh issue, amounting to Rs 279.6 crore, will be utilised for setting up two manufacturing facilities at Seetharampur, Telangana. While Rs 44.8 crore will go towards a new integrated manufacturing facility at Parawada, Andhra Pradesh, Rs 65 crore will be used for prepayment or re-payment of certain outstanding borrowings availed by the company.
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The Hyderabad-based company is an integrated design, engineering and manufacturing company having three primary business lines — pre-engineered buildings, material handling systems and engineering services.
Ardee, which has a diverse client base spanning multiple sectors like e-commerce and logistics, electronics manufacturing, defence, aerospace, steel production, construction, power generation, and mining, serves its customers through five strategically located manufacturing units in Andhra Pradesh and Telangana.
As on March 31, 2024, it had an aggregate installed capacity of 44,144 metric tonnes per annum. In the financial year 2024, Ardee reported revenue from operations at Rs 620 crore with a profit after tax of Rs 29 crore.
