Technofab Engineering plans to raise Rs 70-75-cr through IPO

MUMBAI: Technofab Engineering Limited (TEL) plans to raise Rs 70-75-crore through an initial public offer on June 29.

Technofab Engineering proposes to enter the capital markets with an IPO of 29,90,000 equity shares of face value of Rs 10 each for cash at a price to be decided through a 100 per cent book-building process.

The issue comprises of a reservation of 50,000 equity shares of Rs 10 each for eligible employees.

The issue will constitute 28.50 per cent of the post issue paid-up equity capital of the company. The net issue will constitute 28.03 per cent of the post issue paid-up equity capital of the company.

The company is proposing an initial public offering to meet long term working capital requirements of Rs 30 crore, finance procurement of construction equipment for Rs 16.23 crore, finance setting up of maintenance and storage facility for construction equipment for Rs 4.99 crore and setting up training centre for employees for Rs 5.40 crore and balance for general corporate purposes.

TEL is engaged in the business of providing engineering procurement and construction (EPC) services, and executing a wide range of Balance-of-Plant (BoP) and electro-mechanical projects on a complete turnkey basis.