Mumbai : Jalandhar- based GNA Axles Ltd is taking the Initial Public Offer (IPO) route to raise funds for purchase of machinery and plant; to meet the working capital and other expenditures of the company. The company will raise Rs 130 crore through an IPO issue of up to 63, 00,000 equity shares. The net public issue comprises up to 61 lakh equity share and an eligible employee reservation portion of up to 2 lakh equity shares. The IPO is priced between Rs 205 and 207 per equity share and will open on September 14 and end by September 16.
The company stated that its 54 per cent of the revenue comes from exports and wants to expand and strengthen their hold across its existing market with axles and spindles. “The average growth rate of the company is 6 per cent year-on-year,” said GNA Axles Limited’s president and CEO Ranbir Singh. “We hope to maintain the same pace of growth in coming years as well.”
Commenting about the fall in revenue in 2013, chief financial officer CA Rakesh Gupta said it was due to lower demand in automotive sector as a whole which impacted the company’s growth trajectory. In 2013, the company expanded in spindles and have been supplying to companies in Europe since then and now the company started supplying to the Indian companies as well. “We are competing with Korean players in India for spindles,” added Gupta. The company is eyeing a growth of 50 per cent in spindles. From 2012, the company invested Rs 120 for last three years which includes various technologies to support their plan in spindle category