J. Sagar Associates (JSA) advised Axis Capital Limited and IIFL Securities Limited in relation to the recently concluded initial public offering (IPO) of Craftsman Automation Limited (Craftsman). The Prospectus was filed on March 18, 2021, comprising of a public issue of approximately 5,528,161 Equity Shares of face value of ₹ 5 each, at a premium of ₹ 1,485 each, aggregating to ₹ 8,236.96 million, comprising a fresh issue of ₹ 1,500.00 million and an offer for sale of 4,521,450 Equity Shares comprising 130,640 Equity Shares by the promoter of Craftsman, Mr. Srinivasan Ravi, 1,559,260 Equity Shares by Marina III (Singapore) Pte Limited, 1,414,050 Equity Shares by International Finance Corporation and 1,417,500 Equity Shares by Mr. K. Gomatheswaran, aggregating to ₹ 6,736.96 million. As per news reports, Craftsman’s IPO received over 4.21 lakh applications from retail investors and an overall subscription of 5.1x (QIBs), 2.3x (NIIs) and 2.7x (Retail), despite numerous parallel IPOs.
Craftsman is a diversified engineering company with vertically integrated manufacturing capabilities, engaged in three business segments, namely powertrain and other products for the automotive segment, aluminium products for the automotive segment and industrial and engineering products segment. Craftsman is the largest player involved in the machining of cylinder blocks and cylinder heads in the intermediate, medium and heavy commercial vehicles segment as well as in the construction equipment industry in India. Craftsman is among the top three-four component players with respect to machining of cylinder block for the tractor segment in India. (Source: CRISIL Report). Craftsman is present across the entire value chain in the Automotive-Aluminium Products segment, providing diverse products and solutions. Craftsman’s comprehensive solutions include design, process engineering and manufacturing including foundry, heat treatment, fabrication, machining and assembly facilities.
This is one of the six IPOs concluded by JSA, amidst the ongoing COVID-19 pandemic. This was the only auto-sector IPO launched in the span of last three years.
JSA team comprised Lead Partner – Arka Mookerjee; Principal Associate – Siddhartha Desai; and Associates – Ananth Balaji and Sourav Modi.
Arka’s practice area covers primarily equity capital markets issuances which covers a wide range of products such as Initial Public Offerings, Rights Issues, Qualified Institutions Placements, Initial Public Offering of Infrastructure Trusts and foreign currency convertible bonds.