Precision Camshafts (PCL), a leading global manufacturer and supplier of camshafts, is entering the primary market on Wednesday Jan. 27, 2016, to raise Rs 2.40 billion, via a fresh issue of equity shares of Rs. 10 each and an offer for sale of up to 91.5 lakh equity shares, by promoters and directors, both in the price band of Rs 180 to Rs 186 a share.

The total fund raising aggregates to Rs 4.10 billion, at the upper end of the price band, of which, offer for sale portion is Rs 1.70 billion. Representing 23.28% and 23.62% of the post issue paid-up capital, at the upper and lower end respectively, the issue will close on Friday Jan. 29, 2016.
 
Commenting on the investment rationale ICICIdirect, said, ''At the IPO price band of Rs 180-186, the stock is available at 27-28x on FY15 post issue diluted EPS of Rs 6.6. We believe that even though the company has a decent business model and has put up a good financial performance, the IPO pricing looks elevated. Considering its higher valuation, we recommend that investors Avoid the issue.''

The company is one of the leading players supplying passenger vehicle camshafts globally. Its market share has consistently improved from 5-6% in 2010 to 8-9% in 2014. The company enjoys preferred supplier status and has developed long term relationships with marquee global OEMs in the automobile sector. Its clientele list includes names like General Motors, Ford Motors, Hyundai, MSIL and Tata Motors.

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.