The company aims to raise Rs 475 crore via initial stake sale, including a fresh issue of Rs 175 crore and an offer for sale of Rs 300 crore by its promoters and existing shareholders.The company has cut the public issue size to Rs 475 crore from Rs 760 crore planned earlier.

The Promoters comprising Kamal Sethia, Suman Sethia, Kishore Sethia, Vasudha Sethia, Gaurav Sethia, Vinay Kumar Sethia and Sumit Sethia who will sell shares worth Rs 121.1 crore, whereas other shareholders will offload shares worth Rs 178.89 crore.

The issue will remain open for subscription till Thursday, December 22. Investors can make a bid for a minimum of 60 equity shares and then its multiples thereof. Anchor book will open on Monday, December 19.

The net proceeds from the issue worth Rs 88 crore will be used to repay debt while Rs 37.59 crore will be used for capital expenditure to upgrade and expand its existing facilities at Ghaziabad in Uttar Pradesh and Verna in Goa.

50% of shares are reserved for qualified institutional buyers (QIBs), whereas 15% of shares are reserved for non-institutional investors (NIIs). The remaining 35% of shares will be allotted to retail investors.

The company’s key diversified product portfolio in EMS includes: LED lighting, fans and switches including lighting products, ceiling, fresh air and TPW fans, and modular switches and sockets;  small appliances such as dry and steam irons, toasters, hand blenders, mixer grinders, hair dryer and hair straightener; fractional horsepower motors, which is used in mixer grinder, hand blender, wet grinder, chimney, air conditioner, heat convector, TPW fans etc.; and other miscellaneous products such as terminal block for air conditioners, stainless steel blade for mixer grinders, die casting, radio sets.

For the year ended March 31, 2022, the company reported a net profit of Rs 39.15 crore with its total revenue stood at Rs 1,094.67 crore. It reported a profit of Rs 20.67 crore with total revenue of Rs 604.74 crore till September 30, 2022.

Axis Capital Limited, and JM Financial Limited are the book running lead manager to the issue and KFin Technologies Limited is the registrar to the offer. The equity shares are proposed to be listed on the Main Board of BSE and NSE.Ends