Friday, 12 March 2021

Craftsman Automation Limited Initial Public Offer to open on

Craftsman Automation Limited Initial Public Offer

to open on March 15, 2021

Price band fixed at ₹1,488 to ₹1,490 per Equity Share
Offer to remain open from Monday, March 15, 2021 to Wednesday, March 17, 2021

Minimum Bid Lot is 10 Equity Shares and in multiples of 10 Equity Shares thereafter

The Floor Price is 297.60 times the Face Value of the Equity Shares and the Cap Price is 298.00 times the Face Value of the Equity Shares..

Craftsman Automation Limited (the “Company’), a diversified engineering company with vertically integrated manufacturing capabilities, engaged in three

business segments, namely powertrain and other products for the automotive segment (“Automotive - Powertrain and Others”), aluminium products for the automotive segment (“Automotive – Aluminium Products”), and industrial and engineering products segment (“Industrial and Engineering”) will open the initial public offer of equity shares of face value of 5 each (“Equity Shares” and such initial public offer, the “Offer”) on March 15 2021. The Offer will close on March 17 2021.-maintain consistency in the style of writing dates The price band of the Offer has been fixed at 1,488 to 1,490 per Equity Share.

The Initial Public offering comprises of a fresh issue aggregating up to ₹1,500.00 million by the Company (the “Fresh Issue”) and an offer for sale of up to 4,521,450 Equity Shares comprising up to 130,640 Equity Shares by Srinivasan Ravi (the “Promoter Selling Shareholder”), up to 1,559,260 Equity Shares by Marina III (Singapore) PTE Limited (“Marina”) and up to 1,414,050 Equity Shares by International Finance Corporation (“IFC”) (Marina, together with IFC, the “Investor Selling Shareholders”), and up to 1,417,500 Equity Shares by K. Gomatheswaran (the “Individual Selling Shareholder”) (the Promoter Selling Shareholder, the Investor Selling Shareholders and the Individual Selling Shareholder, together, the “Selling Shareholders” and such equity shares offered by the selling shareholders, the “Offered Shares”).

Bids can be made for a minimum of 10 Equity Shares and in multiples of 10 Equity Shares thereafter.

In terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (the “SCRR”) read with Regulation 31 of the SEBI ICDR Regulations, the Equity Shares issued in this Offer shall aggregate to at least such percentage of the post-Offer Equity Share capital of the Company (calculated at Offer Price). The Offer is being made through the Book Building Process, in compliance with Regulation 6(1) of the SEBI ICDR Regulations, wherein not more than 50% of the Offer shall be allotted on a proportionate basis to Qualified Institutional Buyers (the “QIBs”) (the “QIB Category”), provided that the Company and the Investor Selling Shareholders in consultation with the BRLMs, may allocate up to 60% of the QIB Category to Anchor Investors, on a discretionary basis (the “Anchor Investor Portion”). One-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the price at which allocation is made to Anchor Investors (the “Anchor Investor Allocation Price”). In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the QIB Category. Post allocation to the Anchor Investors, the QIB Category will be reduced by such number of Equity Shares. 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 of the QIB Category shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received from them at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the QIB Category (excluding the Anchor Investor Portion), the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining the QIB Category (excluding the Anchor Investor Portion) for proportionate allocation to QIBs.

Further, not less than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Investors and not less than 35% of the 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 Bidders, other than the Anchor Investors, are mandatorily required to participate in this Offer only through an Application Supported by Blocked Amount (“ASBA”) process, providing details of their respective bank accounts (including UPI ID for Retail Individual Investors using UPI Mechanism) in which the Bid amount will be blocked by the SCSBs or the Sponsor Bank. The Anchor Investors are not permitted to participate in the Anchor Investor Portion through the ASBA process.

The Company proposes to utilize the Net Proceeds which are being raised through the Fresh Issue towards (i) repayment/pre-payment, in full or part, of certain borrowings availed of by the Company to the extent of INR 1,200.00 mn; and (ii) for general corporate purpose for the balance portion.

Axis Capital Limited and IIFL Securities Limited are the Book Running Lead Managers to the issue.

The Equity Shares offered in this Offer are proposed to be listed at both BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”, together with BSE, the “Stock Exchanges”). For the purpose of the Offer, BSE is the Designated Stock Exchange.

All capitalized terms used herein and not specifically defined shall have the same meaning as ascribed to them in the Red Herring Prospectus dated March 5, 2021 (“RHP”).

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