Craftsman Automation’s share sale via initial public offering (IPO) opened for subscription on Monday (March 15). The company is selling its shares in the price band of Rs 1,488 to 1,490 per equity share and at the upper band company plans to raise Rs 823.70 crore from the IPO. Craftsman Automation is an engineering organization that is engaged in manufacturing precision components. The company designs, develops, and manufactures a range of engineering products. It is one of the leading players in the machining of cylinder blocks for the tractor segment.
“Craftsman is the largest player involved in the machining of cylinder blocks and cylinder heads in the intermediate, medium and heavy commercial vehicles segment as well as in the construction equipment industry in India. They are among the top 3-4 component players with respect to machining of cylinder block for the tractor segment in India,” HDFC Securities said in a research note.
The Craftsman IPO will end on March 17 and 50 per cent of the portion of the IPO is reserved for qualified institutional buyers. 35 per cent is reserved for retail investors while 15 per cent is set aside for non-institutional buyers.
Retail investors can buy Craftsman Automation shares in the lot size of 10 shares up to 13 lots that is 130 shares. At the upper price band 130 shares will cost Rs 193,700.
The company will use proceeds from the IPO to make repayment/pre-payment of company’s borrowing fully or partially and to meet general corporate purposes.
Craftsman Automation IPO was subscribed 24 per cent as of 12:10 pm, according to the National Stock Exchange data.