Kutch-based Ajanta Manufacturing, engaged in the manufacture of compact fluorescent lamps (CFLs) and vitrified tiles, has filed its DRHP with SEBI on 15TH April 2008, to enter the capital market with an IPO of 10,064,900 equity shares of Rs 10 each at price to be determined through the book building process at a later stage. The company is also considering a pre-IPO placement. The issue will constitute 19.50% of the post issue equity share capital of the company.
The company proposes to list its shares on BSE and NSE. The BRLMs to the issue are Enam Securities and JM Financial Consultants.
The object of the issue is to raise funds to make investment in its electromotive bikes (E Bikes) project; set up a CFL glass tubes manufacturing facility and to meet the working capital requirements.
The company intends to use the proceeds from the issue to part finance the above-mentioned project cost. It will deploy Rs 163 crores for its Phase II of E-Bikes project; Rs 95 crore for investment in setting up a CFL tubes manufacturing facility and Rs 70 crore for working capital requirement.
Incorporated in 1994, Ajanta Manufacturing, besides manufacturing CFLs and vitrified tiles, also makes aluminium composite panels (ACPs) and has recently commenced the production of E-Bikes.
The company manufactures all its products in a single integrated facility at Kutch and markets under the Oreva brand name.
The company's founder-promoter started Ajanta Transistor Clock Manufacturing Company in 1971, which is engaged in the manufacture of wall clocks sold under the Ajanta brand name.
The company launched its CFL division in 2006 with a current daily production capacity of approx 2,00,000 units. The company is now going in for backward integration of CFL production by building a manufacturing facility for CFL tubes. Its vitrified tiles division commenced production in 2006, having five production lines, capable of producing approx 30,000 sq. mt of vitrified tiles per day. In addition , the company has its own coal gasification facility within the plant. In April 2007 the company forayed into the manufacture of ACPs, which find application in the building industry for interior and exterior paneling. The ACP division has a capacity of 400,000 sq mt of ACPs .per year.
The company has a manufacturing facility to produce E-Bikes. It had assembled a small number of E-Bikes on a trial basis from parts manufactured by third parties. The company has now decided to manufacture the bikes in-house. Production will take place in two phases. The first phase will have a capacity of 400 bikes per day. In phase II, the company proposes to scale up the capacity to 2,000 bike per day. Phase 1 production commenced in March 08 and production from phase 2 is expected by June 30, 2009. Out of total project cost of Rs 25 crore for phase I, the company has funded Rs 11.62 crore as at February end, 2008. For the balance fund requirement, the company will not use the proceeds from the issue.
For the year ended March 31, 2007 the company posted an income of Rs 330.66 crores and net profit of Rs 27.63 crore as compared with an income of Rs 89.75 crore and net profit of Rs 1.34 crore for FY06. For nine months ended December 31,2007, the company's income stood at Rs 365.41 crores and net project was at Rs 50.40 crore.