PPAP to raise Rs 75 cr through IPO

Mumbai, Dec 12 (UNI) Automotive parts maker Precision Pipes and Profiles (PPAP) plans to raise Rs 75 crore through initial public offer opening on December 17.

The issue will be open for subscription for four days and will close on December 20. The price band has been fixed between Rs 140 and Rs 150 per equity share of face value Rs 10 each under 100 per cent book binding process, the company said here today.

Speaking to the reporters, company managing director Ajai Kumar Jain said PPAP plans to invest Rs 106 crore for its expansion initiatives and for setting up an electrical outlet system product unit in NCR region of Delhi. Of the total investment, Rs 25 crore will be through term loan, Rs 6 crore through internal accruals, and the balance of Rs 75 crore will be raised through the IPO, Mr Jain added.

Of the total equity float, up to 50 per cent of the net issue to public will be allocated to qualified institutional buyers on a proportionate basis, out of which 5 per cent will be available to only to mutual funds on the same basis. UTI Securities and NEXGEN Capital will manage the issue.

UNI