Punjab – based GNA Axles on Monday raised approximately Rs 37.88 crore by allotting 18.3 lakh shares to anchor investors at a price of Rs 207 apiece. Among the investors who were allotted shares in the pre IPO placement include HDFC Mutual Fund, UTI Mutual Fund and Reliance Mutual Fund among others. The company has priced its initial public offering (IPO) aimed at raising Rs 130 crore (when calculated at the upper end of the price band), between Rs 205-207 per share. The issue opens on Wednesday, September 14 for public subscription.
The IPO comprises an issue of up to 63 lakh equity shares. The net public issue comprises up to 61 lakh shares and an eligible employee reservation portion of up to 2 lakh equity shares. The minimum bid lot is 70 equity shares and in multiples of 70 equity shares thereafter.
According to guidelines put out by Securities and Exchange Board of India (SEBI), 50% of the shares are reserved for qualified institutional buyers (QIB) category, 15% for high net-worth individuals (HNIs) and 35% for retail investors. Up to 60% of the QIB portion has been reserved for anchor investors and one-third of the anchor investor portion has been reserved for domestic mutual funds. Five per cent of the QIB category, excluding the anchor investor portion, has been reserved for mutual funds on a discretionary basis.
GNA Axles ended 2016 with revenues of Rs 508.9 crore, up 18.18% from the previous year and profit of Rs 25.9 crore, up 20.47%. Total expenses were up 14.56% at Rs 469.6 crore. In fiscal 2016, GNA’s domestic sales and export sales constituted 45.29% and 54.71% of its revenue from operations, respectively, on a consolidated basis.
GNA Axles manufactures axle shafts used in on-highway and off-highway vehicular segments in India. The company manufactures and supplies a range of axle shafts, other shafts and spindles for the on-highway segment, i.e. for light commercial vehicles (LCVs), medium commercial vehicles (MCVs) and heavy commercial vehicles (HCVs) and other transport vehicles such as buses. Company’s customers primarily include original equipment manufacturers (OEMs) such as Mahindra & Mahindra Limited, John Deere, Tractors and Farm Equipment Limited (TAFE), and tier-1 suppliers to OEMs such as Automotive Axles Limited, Meritor HVS AB and Dana Limited.
The Company proposes to utilise the net proceeds of the issue for the purchase of plant and machinery, capital requirements and general corporate purposes. PNB Investment Services and Ambit Private are the book running lead managers (BRLMs) to the issue.