Precision Pipes And Profiles Co. Ltd., has filed its DRHP with SEBI on 13-07-07 for a public issue of 75 lakh equity shares of Rs.10 each. UTI Securities and Nexgen Capitals are BRLM, and shares would be listing on BSE and NSE.
The company is engaged into manufacturing of Auto Seating Systems and exterior products and PVC based customized profiles for white goods and other industries and have Technical Collaboration with Tokai Kogyo Co. Ltd., Japan. The annual capacity is 4.75 lakh kgs. and the company presently has 5 manufacturing facilities in New Delhi and Noida.
For FY 07, the total income of the company was placed at Rs.109.73 crores, EBITDA of Rs.27.89 crores with margin at 25.41%, PAT at Rs.13.88 crores resulting in an EPS of Rs.15.42 on equity of Rs.9 crores. Promoters of the company are presently having 97.5% stake and post issue equity of the company would rise to Rs.16.50 crores. The customers of the company are Maruti, Honda SIEL, General Motors, Toyota Kirloskar, Godrej, Voltas, Videocon and Carrier Refrigeration. Net worth of the company, as at 31-03-07 is at Rs.41.52 crores.
The company has chalked out a capex of Rs.106 crores which is to be financed by term loan of Rs.25 crores, internal accruals of Rs.6 crores and public issue of Rs.75 crores. This implies an issue price at Rs.100 per share. The object of the issue is to enhance in-house tool manufacturing and designing which would get completed by January 08. The company is also increasing its production capacity to be completed by April 08 while new plant for auto component is being set up to be made operational by October, 08. The company is also setting up a new plant for electrical outlet system products which would be completed by April 08.
The present turnover of the company is concentrated mainly on 5 customers which contributes 83% of topline, while 55% of this is coming from a single customer.