Gurgaon-headquartered Sandhar Technologies is launching its first initial public offer (IPO) on 19 March 2018. The auto parts manufacturer today got a green signal from the market regulator Sebi.
In December 2017, the auto component manufacturer had filed draft papers with Sebi to raise Rs 300 crore through the IPO.
According to the sources, the company has been evaluated at about Rs 2,000 crore.
ICICI Securities and Axis Capital will manage the company’s Initial Public Offer (IPO). The equity shares are proposed to be listed on BSE and NSE.
Sandhar Technologies Automotive is an OEM component supplier with manufacturing plants in India, Spain, Poland and Mexico.
The company intends to use a portion of the net proceeds to prepay/repay certain loan facilities and for general corporate purposes.
“Our company intends to utilise an amount of up to Rs 225 crore from the net proceeds towards the same,” the draft papers had said.
The IPO papers further said, “such repayment will help reduce our outstanding indebtedness and debt servicing costs, and enable utilisation of our internal accruals for further investment in our growth strategies. We believe this would improve our ability to raise further resources in the future to fund potential business developments opportunities”.
