Aastha Minmet (India) To Knock The Markets With An IPO
Priyanka Kumari / 02 Apr 2013
While the details regarding the issue size and price have not been disclosed by the company, it intends to use the funds raised through this IPO for acquisitions and meeting the working capital requirements.
Aastha Minmet (India) (AMI) is all set to come up with an initial public offering (IPO) to list its equity shares on the BSE, NSE and MCX-SX in FY14. It intends to raise an amount of Rs 42 crore, while keeping the issue size, price and bid lot size undisclosed. The equity shares offered in this issue will have a face value of Rs 10 per share and will be available on a book building method. Book running lead manager for this issue will be Aryaman Financial Services. AMI is also considering a pre-IPO placement of equity shares to raise Rs 15 crore.
This Bangalore-based company has interests in various sectors of business. The company is engaged in domestic and international trading of coal, steel, iron ore, scrap metal, manganese ore and other metals and minerals. It has many business clients based in countries like Dubai, Indonesia, Singapore, Turkey, South Africa, Mali, Belgium for procurement activities. AMI imports metals and minerals from these countries to fulfill India’s demands.
Further, the company has posted a healthy financial performance in H1FY13. Its topline grew to Rs 696.91 crore in H1FY13 as compared to Rs 166.16 crore in FY12. The bottomline grew to Rs 2.43 crore in the similar period against Rs 1.19 crore in FY12. The EBITDA margin for September 2012 quarter is 0.66% and 2.6% for FY12.
The company intends to utilise these issue proceeds for the acquisition of Chrome Ore Mine in Turkey and to meet the long-term working capital requirement. It proposes to use Rs 15 crore for acquisition of a Turkey mine to improve its efficiency and margins. The working capital requirement of the company for FY14 is Rs 117.65 crore, of which Rs 24.45 crore is met through issue proceeds and the remaining need will be met through internal accruals and other borrowings.
Moreover, AMI has not declared the issue related details like issue size, minimum bid lot size, and issue price. We will however keep readers updated as and when these issue-related details are disclosed by the company.
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