Private equity firm Creador-backed Vectus Industries Ltd, a maker of water storage and piping products, has filed draft papers with capital markets regulator Sebi for its initial public offering (IPO).
The share sale will mark the complete exit of Latinia Ltd, an affiliate of the Creador II LLC, from Vectus.
As part of the offer, Latinia will sell its entire 21.65 per cent equating to 38,98,575 equity shares in the company. Latinia had invested about $16.7 million (Rs 100 crore) for a minority stake in Vectus in June 2014.
As per the Draft Red Herring Prospectus filed with Sebi on June 16, the company’s IPO comprises fresh issue of shares worth Rs 85 crore, besides, an offer for sale of up to 38,98,575 equity shares by the existing shareholders.
Quoting merchant banking sources, PTI said, the IPO may raise an estimated $73.5 million (Rs 500 crore) for the company.
The promoters Ashish Baheti and Atul Ladha hold 31.41 per cent and 29.19 per cent stakes, respectively, in Vectus.
Vectus currently operates through three primary product verticals and sells products under ‘Vectus’, ‘Waterwell’ and ‘Ganga’ brand names. The company’s revenue and net profit for the year ended March 31, 2018 stood at Rs 628.7 crore and Rs 35.5 crore respectively.
Edelweiss Financial Services Ltd, ICICI Securities Ltd and IDFC Bank Ltd will manage the company’s IPO.
Malaysia-based Creador has been investing in India since 2014. In February 2014, the company invested about $8 million in Delhi-based tiles maker Somany Ceramics. The firm invested $42 million in hospital operator Paras Healthcare in June 2017, followed by a $33 million investment in Ujjivan Financial Services Ltd in November the same year.
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