This BanyanTree-backed company has filed for a ₹500cr IPO
What's the story
Gujarat-based Rotomag Enertec, a company backed by BanyanTree Growth Capital, has filed draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The firm plans to raise around ₹500 crore through a fresh issue of shares. Existing shareholders, including promoters and investor BanyanTree, will also sell up to 2.4 crore shares via an offer-for-sale route.
Share distribution
BanyanTree holds a 17.58% stake in Rotomag
At the time of filing, promoters held a 75.59% stake in Rotomag Enertec, while public shareholders owned the remaining 24.41%. This includes a 17.58% stake held by BanyanTree Growth Capital since September 2015 via equity shares and compulsory convertible debentures (CCDs). As part of its fresh issue plan, Rotomag may also consider raising up to ₹100 crore in a pre-IPO round before filing its red herring prospectus with the Registrar of Companies.
Company profile
Company's operations and product offerings
Rotomag Enertec operates six facilities across India, manufacturing direct current (DC) motors, solar-powered pumps, and photovoltaic string inverters. The company's products are used in a variety of industries such as plastic processing, textiles, wind energy, construction equipment among others. The funds raised from the fresh issue will be utilized for redemption of non-convertible debentures and working capital requirements.
Financial growth
Impressive growth in profit and revenue
For the fiscal year ending March 2023, Rotomag Enertec reported a profit of ₹167.5 crore, up by a whopping 134.7% from ₹71.4 crore in the previous year. Its revenue also grew by an impressive 82.2% to ₹1,265 crore from ₹694.2 crore during the same period. Equirus Capital, CLSA India and JM Financial are managing the company's IPO as merchant bankers.