New Delhi, January 29, 2018: Sintercom India Limited (“Company”), is engaged in the business of manufacturing of sintered metal automotive components of engines, transmissions systems, body chassis and exhaust applications using sintering manufacturing processes  will be launching its NSE Emerge SME initial public offering (“IPO” or the “Issue”) which is scheduled to open on February 05, 2018 and close on February 07, 2018 with a price band of Rs. 63 to Rs. 65 per Equity Share of face value of Rs. 10 each of the the Company (the “Equity Shares”). The Anchor Allocation is scheduled a day before the Issue Open i.e. February 02, 2018.

 

Initial Public Issue of 65,46,000 equity shares of face value of Rs. 10 each of the Company. The issue consists of a Fresh Issue of 30,16,000 Equity Shares of face value of Rs.10 each and an Offer for SaleUpto 10,31,213 Equity Shares by Victora Stock-Invest Private Limited and Upto 24,98,787 Equity Shares by Maurill Industries Limited (“referred as selling shareholders”).

 

The offer includes a reservation of upto 50,000 Equity Shares of face value Rs.10/- each for subscription by eligible employee (“Employee Reservation Portion”) and Upto 3,34,000 Equity Shares of face value of Rs. 10/- each will be reserved for subscription by Market Maker (“Market Maker Reservation Portion”).

 

The offer less the Employee Reservation Portion and Market Maker Reservation Portion i.e. offer of up to [.] Equity Shares of face value of Rs. 10/- each at an Offer price of Rs. [.] Per equity share (is hereinafter referred to as the “Net Offer").

 

In terms of Rule 19(2)(b)(i) of the Securities Contracts (Regulation) Rules, 1957, as amended (the SCRR) the Offer is being made for at least 25% of the post-Offer paid-up Equity Share capital of the Company. The Offer is being made through the Book Building Process, in compliance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended the (SEBI ICDR Regulations) wherein 49.82% of the Net Offer will be allocated on a proportionate basis to Qualified Institutional Buyers (QIBs)(the QIB Category), provided that the Company and Selling Shareholders, in consultation with the BRLM, may allocate up to 60% of the QIB Category to Anchor Investors, on a discretionary basis (the 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 Offer Price. Further, 5% of the QIB Category (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only and the remainder shall be available for allocation on a proportionate basis to QIBs including Mutual Funds, subject to valid Bids being received from them at or above the Offer Price.

 

Further, not less than 15% of the Net Offer will be available for allocation on a proportionate basis to Non-Institutional Investors and not less than 35% of the Net Offer will be available for allocation to Retail Individual Investors, in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. All investors (except Anchor Investors) shall participate in this Offer mandatorily through the Applications Supported by Blocked Amount (ASBA) process by providing details of their respective bank accounts which will be blocked by SCSBs. For details, see Offer Procedure on page 225 of this Red Herring Prospectus.

 

The Offer and the Net Offer will constitute [.]%  of the post issue paid-up equity share capital of the company.

Pantomath Capital Advisors Private Limited is the Book Running Lead Manager (“BRLM”) to the Offer. The Registrar to the Offer is Link Intime India Private Limited.

 The Equity Shares of Sintercom India Limited is proposed to be listed on SME Platform of NSE Emerge.

 About Sintercom India Limited (Sintercom)

Incorporated in the year 2007, Sintercom is engaged in manufacturing of sintered metal products, machining and assembly of metal components and is currently engaged in the business manufacturing sintered metal automotive components of engines, transmissions systems, body chassis and exhaust applications using sintering manufacturing processes. The Company’s products are used in the commercial and passenger vehicles.

Commercial production of Sintercom started in 2009. Company started its business with the selling of its product, Hego Bosses to Tier-1 automotive exhaust system manufacturing companies in India and globally.

Currently, Sintercom caters to OEMs like Maruti Suzuki Limited, Mahindra & Mahindra Limited, Bajaj Auto Limited and Fiat India Automobiles Private Limited. They have an in-house dedicated Research & Development team and the main product line of the company is manufacturing of high strength structural sintered components of Engine and Transmissions.