Porwal Auto Components Ltd (PACL) has filed its DRHP with SEBI on 10th August 2007 for a public issue of 50 lakh equity shares of Rs.10 each at a price to be determined later. The BRLM to issue is Keynote Corporate Services and it is to be listed on the BSE and NSE.
PACL is a Madhya Pradesh based company, engaged in the manufacturing and marketing of S.G. (Ductile) Iron and Grey Cast Iron Castings and components especially meant for the automobile sector.
The manufacturing facilities of the company are situated in Pithampur also known as Detroit of India, which is 30 Kms. away from Indore, the commercial capital of Madhya Pradesh. Logistically the unit is situated close to renowned automobile manufacturers like Eicher Motors Ltd., Kinetic Motors Ltd., Force Motors Ltd., MAN Force Trucks Pvt. Ltd. and L & T Case Equipment Pvt. Ltd. etc.
The company proposes to expand its manufacturing capacities from 6,600 MT per annum to 27,600 MT per annum to meet the growing demand in the industry. The company has already commenced its expansion since 2005 and presently has increased its installed capacity to 9,000 MTPA. This expansion has been funded through a Term Loan from State Bank of Indore to the tune of Rs. 12 crore and through the proceeds of the preferential allotment of equity shares. In addition to the above mentioned capacity expansion plan, the company plans to setup one Wind Mill, of 1.5 MW Power Generation capacity at Palsodi in Madhya Pradesh for captive consumption.
The total project cost has been estimated at Rs.55.25 crore of which Rs.8 crore has come via preferential allotment of equity shares, Rs.12 crore loan from Bank of Indore, unsecured loans to the tune of Rs.2.50 crores, internal accruals of Rs.1.77 crore and the balance via proposed public issue.
The current equity capital of the company stands at Rs.10.10 crores. It expects to start commercial production of the expanded capacity and with the windmill by July 2008.