The Company proposes to utilize net proceeds from the Fresh Issue towards (i) Funding of capital expenditure requirements towards purchase of machinery and equipment estimated to be ₹ 70 crore, (ii) Repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings availed from banks and financial institutions estimated to be ₹ 90 crore; (iii) Funding working capital requirements estimated to be ₹ 30 crore; and balance amount towards General corporate purposes. (“Objects of Offer”)The Offer for Sale (“Offer for Sale”) comprises of Equity shares aggregating up to ₹168 crore by Sudhir Rai and Equity shares aggregating up to ₹ 82 crore by Anita Rai. (“Promoter Selling Shareholders”)The Equity Shares are being offered through the Red Herring Prospectus of the Company dated September 2, 2024 (“Red Herring Prospectus” / “RHP”) filed with the Registrar of Companies, Jharkhand at Ranchi (“ROC”), SEBI and the Stock Exchanges.The Equity Shares offered through the Red Herring Prospectus are proposed to be listed on the stock exchanges being BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”, and together with the BSE, the “Stock Exchanges”). For the purposes of the Offer, the Designated Stock Exchange shall be NSE.
The Offer is being made through the Book Building Process, in terms of Rule 19(2)(b) of the SCRR read with Regulation 31 of the SEBI ICDR Regulations and in compliance with Regulation 6(1) of the SEBI ICDR Regulations, wherein not more than 50% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”, and such portion, “QIB Portion”) provided that our Company may, in consultation with the BRLM, allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (“Anchor Investor Portion”), of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. In the event of under-subscription or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the Net QIB Portion.