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 Ashika Stock Broking, said, ''Financially the company is well placed with gearing ratio at lower level (0.67x) and consistently reporting positive operating cash flows in the past four years. Lower capex and improved operating efficiency aid company to report free cash flows for last two consecutive fiscal years. Financial performance has been more robust than balance sheet, with revenue growing at a CAGR of 21% during the period between FY12-FY15, while EBITDA grew at 50% CAGR followed by PAT CAGR of 45% during same period."
"The issue is comprised of both fresh equity share and offer for sale. PCL would raise Rs 2.40 billion from fresh equity share to fund its Rs 2 billion capex towards establishment of a machine shop for ductile iron camshafts in its EOU unit. So, we assign a Neutral stance towards the issue and advice our investors to wait for a better price discovery in secondary market post its listing,'' it added.
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