PE-backed Craftsman files for India IPO
Indian automobile and heavy equipment component manufacturer Craftsman Automation has filed for an IPO. The International Finance Corporation (IFC) and Standard Chartered Private Equity will make partial exits in the offering.
According to the prospectus, Craftsman will issue an undisclosed amount of new shares for INR4 billion ($59 million), along with up to 4.4 million shares held by existing investors, including 1.6 million shares from SCPE and 1.4 million shares from IFC. Pricing has not been announced. Up to INR3 billion from the fresh issue will be used to repay Craftsman's debt.
SCPE and IFC currently hold stakes of 15.5% and 14.1%, respectively. Their sales will reduce their total shares by half. IFC invested $37 million in Craftsman in 2010, and committed another $30 million in debt financing earlier this year. SCPE invested $15 million in 2012.
Craftsman was founded in 1986 and manufactures a wide range of precision components and sheet metal for the transporation, energy, and healthcare sectors. Its customers include a number of marquee domestic and global original equipment manufacturers (OEMs) including Tata Motors, Mahindra & Mahindra, Mitsubishi, Siemens, and John Deere. The company has 11 manufacturing facilities across India, with two more under development.
Craftsman's total revenue came to INR12.1 billion for the year ended March 2017, up from INR9.8 billion the year before. The greatest growth came in the automotive component segment, which rose from INR5.8 billion to INR7.2 billion. Over the same period, net profit fell from INR446 million to INR426 million.
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