Premji Invest backed Gold Plus Glass Industry, on Monday, submitted a draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offer (IPO).
The initial public offering (IPO) includes a primary issue of shares valued at ₹500 crore, along with a secondary offer of 1.57 crore shares by two promoters — namely, Suresh Tyagi and Jimmy Tyagi — in addition to shares of Premji Invest-owned PI Opportunities Fund I and Kotak Special Situations Fund.
Also Read: Vibhor Steel Tubes lifts ₹21 crore from anchor investors before IPO
PI Opportunities Fund, a subsidiary of Premji Invest, operates as the private equity and venture capital investment arm of the Premji Foundation, overseen by Azim Premji.
Together, these promoters collectively hold a 24.20 percent stake in the company, taking into account the conversion of compulsorily convertible debentures (CCDs) into equity shares. PI Opportunities Fund owns 16.45 percent stake in Gold Plus Glass through compulsorily convertible preference shares (CCPS), while Kotak Special Situations Fund holds 9.3 percent stake through CCDs.
Gold Plus Glass claims to be the second largest float glass manufacturer in India, boasting a 22 percent share of production capacity for float glass.
“The repayment/advance payment will help reduce our outstanding debt, help us maintain debt equity and enable utilization of some additional amount of our internal accruals for further investment in business growth and expansion,” the company said.
As of September 30, the company operated three interchangeable production lines, capable of producing both clear glass and value-added glass, with a combined capacity of 2,050 tonnes per day across two locations: Roorkee in Uttarakhand and Belgaum in Karnataka.
From the total income generated by the recent issue of shares, the company plans to allocate ₹400 crore towards repayment of outstanding loans, with the rest earmarked for general corporate purposes, as outlined in its Draft Red Herring Prospectus (DRHP).
Also Read: Nifty PSU Bank falls over 4.4% to record worst intraday fall in year; this is how PNB, BOI, SBI and others acted
As of September 30, 2023, the company’s total outstanding loans amounted to ₹1,390 crores.
In the six months ending in September, the company reported revenue of ₹834 crores and a profit of ₹42.5 crores. IIFL Securities, Kotak Mahindra Capital, Axis Capital, and SBI Capital Markets are acting as the book-running lead managers to the IPO.
Here’s your comprehensive 3-minute summary of everything Finance Minister Nirmala Sitharaman said in her budget speech: Click to download!
Catch all Business News, Market News, News Events and Latest News Updates on Live Mint. Check out all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More or less
Published: 12 Feb 2024, 21:26 IST