Viney Corporation Ltd. filed a draft red herring prospectus with the Securities and Exchange Board of India to seek its nod for a proposed initial public offer. The company will offer shares with a face value of Rs 10 each amounting to Rs 150 crore as fresh issue.
The IPO also entails 2.22 crore shares with a face value of Rs 10 each as an offer for sale from Viney Corp's promoters and other shareholders, according to the DRHP.
Brijesh Aggarwal and VL-Auto Ancillary Pvt. Ltd. are the promoters in the company who will offload their stakes.
Priyanka Aggarwal, Rakesh Kumar Aggarwal, and Aren Capsules Pvt. Ltd. are other shareholders who will sell their stakes in the company, the DRHP said.
75% of the total offer is for qualified institutional buyers, and 15% will be for non-institutional investors, while the rest 10% will be reserved for retail individual bidders, it said.
ICICI Securities, Axis Capital, and Link Intime are the lead-running manager of the issue, the draft papers added.
Viney Corp intends to use the proceeds from the IPO for pre-payment, and re-payment of full or in part of its debt and for general corporate purpose. The company is also hoping to increase visibility and improve its brand image by listing itself on the bourses.
According to the DRHP, Viney Corp will fund Rs 122.4 crore debt from the IPO proceeds. The company will not use more than 25% of the net proceeds from the IPO for its general corporate purpose.
Viney Corp designs, manufactures, supplies, and exports a wide range of automobile components for two-wheelers, three-wheelers, and passenger vehicles. The product portfolio consists of mechatronic products like steering wheel switches, gear shifting paddles, light control units, brake pedal switches, sensors, etc., it said in the DRHP.
Viney Corp's connective products include wiring harnesses, fuse boxes, wire, cables, terminals, and connectors. Viney Corp is a Tier I supplier for original equipment makers of mechatronic products and connective products, the DRHP said.
"One out of every six two-wheelers sold in India is fitted with one of our device wiring harness," Viney Corp said citing Crisil report.
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