Trinity India (TIL) manufacturer of steel forgings and auto components has filed its DRHP with Sebi on 12/8/2008 to enter the capital market with an IPO of 48 lakh equity shares of Rs 10 each at a price to be determined through the book building process.
The company proposes to list the shares on BSE and NSE and the BRLM to the issue is Fortune Financial Services.
The object of the issue is to raise funds for expansion of forging capacity of 3,000 mtpa at Shirapur under Phase I and 12,600 mtpa at Pune in Phase II, thereby taking the total installed capacity of forging to 28,100 mtpa and also increasing machining capacity at both the locations to meet the requirement arising out of proposed expansion; to meet the working capital requirement and for general corporate purposes.
The company proposes to utilize the proceeds from the issue to part finance its proposed expansion project cost and also for working capital requirement and for general corporate purposes. The company will deploy Rs 10.40 crores towards the cost of building and land and land development; Rs 40.20 crores for forging machinery and related machinery; Rs 3.90 crores for service utility and Rs 13 crores for working capital and contingency.
Besides proceeds from the issue, Axis Bank has sanctioned term loan of Rs 8 crores for financing the project cost. The company will also raise Rs 5 crores to finance the project through private placement of equity shares and promoters contribution by way of equity shares of Rs 1.25 crores.
TIL's main activities comprise fully heat treated closed die steel forgings that can be converted into machined components which are ready to assemble for cars and trucks, high pressure fluid application, material handling and other general engineering industries. At present, Trinity India has five units, four located at Bhosari and one at Shikrapur. Among the Bhosari units, one has heat treatment facility, two have machining facilities and one unit has hammer forging facility while the Shikrapur unit has press forging, heat treatment as well as machining facility.
At present, TIL's exports about 50% of its total sales and is a globally recognized supplier which operates in a segment consisting of Front Wheel Hubs and Rear Wheel Spindles for all front wheel driven car. To this effect, the company has built up repetitive order book position with clients like Ford Motor Car Co., Bosch, Germany, etc in the international market and Tata Motors, Maruti Suzuki Ltd, Ford India Ltd, Force Motors Ltd, Turbogears Ltd, Iljin Auto Motors Ltd etc. in domestic market. TIL also received status of 'Export House' from the Ministry of Commerce & Industry, in 2006.
The company now proposes to enhance its forging and machining capacity at its new unit at Talegaon in Pune.
The company posted total income of Rs 69.72 crores for the year ended March 31, 2008 as against Rs 49.14 crores for the previous year. The company's net profit for the year ended March 31, 2008 was Rs 5.15 crores as compared with Rs 2.34 crores for the previous year.