Pioneer Fil-Med Files DRHP With SEBI For ₹500 Crore IPO

New Delhi: Railway components maker Pioneer Fil-Med Ltd has filed draft papers with the markets regulator Sebi to raise Rs 500 crore through an Initial Public Offering (IPO). The proposed issue comprises a fresh issue of equity shares aggregating Rs 250 crore and an Offer For Sale (OFS) of shares worth Rs 250 crore by existing shareholders, according to the Draft Red Herring Prospectus (DRHP) filed on Sunday.

The OFS includes stake sales by promoter Pioneer Facor IT Infradevelopers and promoter group entity Aztech India, each proposing to offload shares worth up to Rs 125 crore. The company proposes to utilise the proceeds from the fresh issue towards part financing the cost of establishing a gear box manufacturing facility and a wind generator components manufacturing facility, both at Salarpur in Bhiwadi, Rajasthan, as well as for general corporate purposes.

Additionally, the listing of its equity shares on the stock exchanges is expected to enhance the company's brand visibility and provide liquidity by creating a public market for its shares in the country. The company may undertake a pre-IPO placement of equity shares aggregating up to Rs 50 crore. In case such a placement is completed, the size of the fresh issue will be reduced to the extent of the funds raised.

Pioneer Fil-Med began operations in 1997 by manufacturing and supplying filters for railway and automotive applications and have since expanded our portfolio to include traction motors, alternators, brake discs, gangways, stators and rotors for locomotives, as well as platform screen doors for metro systems, wind generators and related services. Nuvama Wealth Management and Equirus Capital have been appointed as the book running lead managers to the issue.

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