Indo-MIM said to cut IPO size to $420 million in July launch

Precision engineering components maker Indo-MIM Ltd. is preparing to launch an initial public offering later this month, aiming to raise about $420 million after scaling back the share sale, according to people familiar with the matter.
The company had been seeking up to $700 million in an IPO planned for March but postponed the offering amid heightened geopolitical tensions in the Middle East, the people said, asking not to be identified because the information is private. It has since cut the target raise to roughly 40% lower, they added.

Deliberations are ongoing, and details including the timing, valuation and final issue size could still change, the people said. A spokesperson for Indo-MIM didn’t respond to requests for comment.


The revived offering comes as overseas investors return to Indian equities, purchasing a net $2.1 billion of local shares so far this month, according to Bloomberg-compiled data. The improved sentiment has prompted several companies with delayed listing plans to return to the market. About 178 firms have received regulatory approval from the Securities and Exchange Board of India to launch IPOs over the past year.

According to its draft prospectus, Indo-MIM’s original IPO comprised a 10 billion-rupee ($104 million) primary share sale and an offer for sale of about 129.7 million shares, representing roughly 26% of the company’s equity by existing shareholders.

The Bengaluru-based company manufactures precision engineering components using metal injection molding technology and operates 15 manufacturing facilities globally, with six in India, six in the US, two in the UK and one in Mexico, according to the prospectus. Proceeds from the fresh issue will be used to repay borrowings and for general corporate purposes.

Axis Bank Ltd., Kotak Mahindra Capital Co., SBI Capital Markets Ltd., ICICI Securities Ltd. and HDFC Bank Ltd. are advising on the proposed share sale.