LML IPO on April 7; to be in Rs 130-140 band
Ahmedabad, Apr 5: Hyderabad-based Lokesh Machines (LML) will come out with an initial public offer (IPO) on April 7 to raise about Rs 42 crore to part fund its expansion and modernisation needs, including a dedicated assembly line for Ashok Leyland.
The automative machine tools major will issue 30 lakh shares of Rs 10 each at a price band of Rs 130-140 through book building route. The issue will close on April 13.
The IPO will be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). While 50 per cent of the shares would be allocated to qualified institutional buyers (QIBs), 15 per cent to non-institutional investors and the remaining 35 per cent will be allocated to retail investors.
Post-issue, the company has proposed to change its aphorism from 'LML' to 'Lokesh Machines' or some other suitable logo, which is yet to be finalised.
Company's Managing Director M Lokeshwar Rao told mediapersons here today that Rs 20.98 crores are proposed to be spent on new cylinder blocks and cylinder heads facility for commercial vehicles, Rs 18.29 crores on upgradation of its existing machine and machine tools division and Rs 7.73 crores for capital margin.
He said, LML is building an assembly line dedicated to Ashok Leyland as it has realised the importance of having dedicated assembly lines for particular clients.
The company had also added computerised numerical control (CNC) division to its existing special purpose machine (SPM) four years back, which is helpful in custom-made products, he added.
LML plans to increase its turnover from Rs 75 crore in the last fiscal to Rs 100 crore this year. It has attained a compound annual growth rate of 28 per cent during the last three years.