Jalandhar-based GNA Axles has said its upcoming IPO will open for subscription on 14 September and will close on 16 September. Anchor investor bids will open on 12 September. A total of 6,300,000 shares will be sold in the price band of INR205 – 207 per share, including 200,000 shares for eligible employees. In total, the company will raise INR130 crore (INR1.3 billion) through the public offer. Investors can apply for minimum 70 shares and in multiples thereafter. A portion of 35% has been reserved for retail investors in GNA Axles IPO.
GNA Axles IPO Proceeds
GNA Axles, one of the leading manufacturers of rear axle shafts used in on-highway and off-highway vehicular segments, plans to use IPO proceeds for acquiring plant and machinery, meet working capital requirements and general corporate purpose. According to the draft prospectus, the company planned to use a sum of INR80.07 crore (INR800.7 million) for purchasing plant and machinery and INR35 crore (INR350 million) is kept for working capital requirements.
Promoters of GNA Axles are Jasvinder Singh Seehra, Ranbir Singh and Gurdeep Singh.
Background of GNA Axles
Incorporated in 1993, GNA Axles supplies rear axle shafts for agricultural and commercial vehicles. GNA has two manufacturing units in Kapurthala and Hoshiarpur with production for on-highway and off-highway vehicular segments including HCV, MCV, LCV tractors and machinery.
The company boasts of a broad customer base in India and overseas. Its customers include original equipment manufacturers (OEMs) like Mahindra & Mahindra (M&M), Tractors and Farm Equipment (TAFE) and John Deere. GNA also serve as tier-1 supplier for companies like Transaxle Manufacturing of America, Kubota Corporation Meritor HVS AB, Dana Limited and Automotive Axles Limited. GNA exports equipment to overseas locations including USA, UK, China, Japan, Germany, France, Australia, Sweden, Italy, Turkey and Spain.
For fiscal year 2015, GNA Axles earned INR430.6 crore (INR4.3 billion) as revenue and INR21.6 crore (INR216 million) as net profit. Domestic sales and exports accounted for 51.67% and 48.33% respectively in the latest FY.
To know more about the IPO and to participate in a lively discussion, refer to this page on GNA Axles IPO. Keep coming back to IPO Central as we plan to publish our review of GNA Axles IPO in the coming days.