HPL Electric & Power files DRHP, to raise 450 crore via IPO route

HPL Electric & Power (HPL) has filed papers to markets' regulator SEBI to raise Rs 450 crore through an Initial Public Offering (IPO). The company is considering a pre-IPO placement of upto 42 lakh equity shares aggregating upto Rs 125 crore. It also submitted Draft Red Herring Prospectus (DRHP).

The proceeds of the issue will be used for repayment of loans, to fund working capital requirements and for other general corporate purposes.  The issue is being managed by SBI Capital Markets, ICICI Securities and IDFC Bank. The equity shares will be listed on the BSE and NSE.

The electric equipment industry is growing and has an average growth rate of 8 per cent. According to Indian Electrical & Electronics Manufacturers’ Association (IEEMA), the industry will grow in double digits. The size of the Indian electric equipment industry is USD 23 billion (Rs 1581 billion), out of which USD 5.9 billion (Rs 406 billion) is attributed to exports. HPL is takingadvantage of growing electrical equipment industry and is raising money through IPO.

Meanwhile, SEBI has sought clarification from merchant bankers of four companies regarding their proposed initial public offerings. The four companies include Enzyme Technologies; KPR Agrochem; S P Apparels; and Thyrocare Technologies.

HPL, a multi product electric equipment company is among the leading players in the electrical industry. The company is focused on the design and development of products, is a premium manufacturer of reliable electrical protection equipments, switchgears, electronic energy meters and energy management systems. It has R&D centre, with over 100 engineers innovating, developing and processing to produce the very best in class products.